China’s Local Governments Have ‘Hidden’ Debt Estimated at $8 Trillion or Nearly Half of the Country’s GDP
Not only are companies investing in China’s real estate market facing solvency issues, but China’s local governments also have huge amounts of debt outstanding as well.
We reported earlier today that the debt obligations related to investments in China’s real estate by corporations like Evergrande, is around a half a trillion dollars. This is what we know now.
We now also know that the local governments in China have trillions of dollars of debt which is not carried in their books. Bloomberg reports:
China’s hidden local government debt has swelled to more than half the size of the economy,
