The Wall Street Journal report on local government financing vehicles raising money via debt, which is kept off the books of the municipalities themselves.

  • debt being sold at a record pace to fund infrastructure, and hence boost growth
  • central government has relaxed its stance on debt buildups
  • investors are betting state support will be there if needed

Local government financing vehicles have issued 2.37 trillion yuan ($332 billion) of domestic bonds this year.

  • up 38% from the same period in 2018
  • poised to break the full-year record of 2.56 trillion yuan set three years ago

More at the link here