Date
18 October 2017

CBRC tightens grip on lending to LGFVs, report says

The China Banking Regulatory Commission has ordered financial institutions to cut lending to local government financing vehicles (LGFVs) this year as potential default risks are increasing, financial information provider AAStocks reported Tuesday, citing an industry source. Trust loans, asset-backed securities and acceptance bills are among the LGFV funding tools targeted by the regulator, the report said. Trust loans to fund infrastructure construction due in 2014 have reached 272 billion yuan (US$44.6 billion), data released by Sinolink Securities showed.

– Contact HKEJ at digest@ejinsight.com

KZ/AC/CG

 

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