Risk is noted in 20% of China's local government financing

03/13/2013 | Xinhuanet.com (China)

Projects that are not producing a profit underlie about 20% of local government financing vehicles across China and pose financial risks, said central bank Governor Zhou Xiaochuan. This puts a strain on governments, which have to service the debts from other income sources. "We should not underestimate risks in local government financing vehicles, nor should we overestimate them," Zhou said.

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