You are here

PBOC's role in focus as local government debt grows

Central bank chief has options ranging from broad monetary easing to targeted steps in order to avoid credit crunch

Shanghai

A SURGE in China's local-government debt pile is drawing focus to the central bank's role in avoiding a credit crunch as policy makers seek to develop a municipal-bond market.

Provincial authorities estimated they had some 16 trillion yuan (S$3.4 trillion) in liabilities