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