Date
15 December 2018

CBRC to tighten local govt financing supervision, report says

The China Banking Regulatory Commission, along with the Ministry of Finance and the National Audit Office, has been strengthening supervision over the financing platforms of local governments amid a significant rise in their outstanding debts, the 21st Century Business Herald reported Saturday, citing an unnamed person with knowledge of the matter. The commission plans to tighten regulation of local governments’ borrowings and urge them to publish their balance sheets as they face increasing pressure to repay their debts, according to the newspaper. Local governments raised 400 billion yuan (US$65.43 billion) in the first half, more than the 322.8 billion yuan raised in the whole of 2012, while 32.6 percent of their combined 1.85 trillion yuan debts due this year will have to be repaid in the fourth quarter, the report said.

– Contact HKEJ [email protected]

TL/AC/CG

 

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