China tightens rules on insurers to fight local government debt fears

Beijing

CHINESE authorities have tightened rules on how insurers can provide financing to local governments, as Beijing intensifies its crackdown on illicit local government borrowing and risky lending practices.

The new rules are the latest in a series of tough measures taken by Beijing in recent months to rein in local government debt, with policymakers increasingly wary of lurking risks in the world's second-largest economy.