Issue of local government debt in China cannot be taken lightly
ANBOUND
The Chinese National Audit Office released the follow-up audit results on the implementation of major national policy measures. The results show that six cities and counties in five provinces, namely Baotou City, Shaoyang City, Shuangfeng County, Leshan High-tech District, Baiyin City, and Xixia District of Yinchuan City face the government's implicit debt of RMB 15.422 billion caused by the breaches of the letter of commitment, financial leasing, and the signing of engineering government purchase service agreements. This shows that the issue of local government debt cannot be taken lightly.