China’s Local Government Debt: Fallout from a Perfect Storm

The hidden debt of China’s local governments, which is held by entities called Local Government Financing Vehicles (LGFVs), has rattled financial markets. Now some worry that it could threaten the entire economy. While there is no official data, one estimate of LGFVs debt puts it at 59 trillion yuan (US$8.25 trillion) at the end of … more