China's deficit plans put squeeze on local govt financing
Some of the major providers of such funding fear they could go under as pressure on them is huge
Wed, Mar 11, 2015 - 5:50 AM
If big state issuers squeeze LGFVs out of the primary bond market, it could also hit capital spending at a time when growth in China is already at quarter-century lows.
CHINA'S plan to run its biggest fiscal deficit since the global financial crisis may help develop its bond market, but the extra competition for funding could sink some of the major providers of local government financing.
Local government financing vehicles (LGFVs), which...