Posts tagged 'LGFVs'

Lessons in sustainable finance from local Chinese governments

From the FT:

Local governments in some of China’s smallest cities are snapping up an increasing amount of their own land at auctions, in a destructive cycle designed to prop up property prices but which is ravaging their own finances.

Local government financing vehicles in at least one wealthy province, Jiangsu, which borders Shanghai, accounted for more land purchases than property developers did in 2013 — the last year for which data were available — according to research collated by Deutsche Bank…

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Because the results of China’s local government debt audit just can’t come fast enough

SIV/ LGFV/ LGIV/ *shrug*

Whatever you choose to call the vehicles China’s local governments used to fund infrastructure when Beijing restricted financing (we are going with LGFVs here) they are very near the centre of Chinese debt fears. Which means it’d be nice to know how big they really are.

From Stephen Green at Standard Chartered (our emphasis): Read more

Changing China’s biggest bank account?

To tell the story of China’s biggest bank account it helps, perhaps, to start with a story about certain, smaller, Chinese bank deposits. So. Meet Zhang Meifang.

Ms Zhang is, or rather was, an official at the Jiangsu Province Finance Bureau. Read more

State loan fears stalk China’s banks

China’s banks are facing serious default risks on more than one-fifth of the Rmb7,700bn ($1,135bn) they have lent to local governments across the country, senior Chinese officials have told the FT. In a preliminary self-assessment carried out at the request of the country’s regulator, banks identified about Rmb1,550bn in questionable loans to local government financing vehicles – which are mostly used to fund regional infrastructure projects. Now that’s a stress test, says the FT’s Lex, while FT Alphaville points out that Chinese credit ratings are also grabbing headlines.