Beijing: China has announced a 6 trillion yuan ($837.7 billion) bond issuance plan over three years, aimed at alleviating the “hidden” debt of local governments through debt swaps. This measure is a critical move to stabilize the economy amidst declining growth, rising debt levels, and deflationary pressures. The National People’s Congress (NPC) raised the debt ceiling for local governments to facilitate these swaps and reduce financial strain on local government financing vehicles (LGFVs). By 2028, the government aims to reduce hidden debt from 14.3 trillion to 2.3 trillion yuan. Interest…
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