Chinas 20 TRILLION IN DEBT!!!!!

Chinas 20 TRILLION IN DEBT!!!!!

Posted in the China Forum

CCP cant even rule China

Port Moody, Canada

#1 Sep 16, 2013
State Researcher Says China Local Debt May Top 20 Trillion Yuan
By Bloomberg News - Sep 16, 2013 4:30 AM PT

China’s audit of local government debt may find that provincial and municipal authorities owe more than 20 trillion yuan ($3.3 trillion), said Liu Yuhui, a researcher at the Chinese Academy of Social Sciences.
That would be “way higher” than the level of debt at the end of 2010, Liu said at a briefing in Beijing today to announce that the academy and China Credit Rating Co. will jointly develop credit ratings for the country’s local governments. China’s National Audit Office said in a 2011 report that local authorities owed 10.7 trillion yuan at the end of 2010.
The State Council, China’s cabinet, ordered a nationwide audit of local government debt in July on concerns that slowing economic growth may leave some authorities unable to repay borrowings. Local Chinese governments have sidestepped rules barring them from directly taking bank loans and selling bonds by setting up thousands of companies to do so instead, raising funds to build roads, bridges and sewage systems.
“Many local governments are under pressure from a capital shortfall as they need to fund public projects required for urbanization,” Liu said. China’s current system doesn’t meet their funding needs and as a result,“the issue of local government debt is in a situation of getting out of control.”
China this year expanded trials that began in 2011 to allow provinces and cities to directly sell bonds. The eastern provinces of Jiangsu and Shandong were added to the trial in July, joining the provinces of Zhejiang and Guangdong and the cities of Shanghai and Shenzhen.
...
CCP cant even rule China

Port Moody, Canada

#2 Sep 16, 2013
...
Credit Ratings
The partnership to develop ratings marks a step forward in China’s preparation to allow local governments to sell debt, Chinese Academy of Social Sciences Vice President Li Yang said at the briefing today. China Credit Rating was set up in August 2010 by the National Association of Financial Institutional Investors, a body under China’s central bank that regulates the interbank bond market.
In April, Former Finance Minister Xiang Huaicheng also said that local Chinese government debt may be more than 20 trillion yuan. Xiang, who served as finance minister from 1998 to 2003, said the figure was based on his personal estimates.
Liu today said that his estimate was partly based on information from a friend at the China Banking Regulatory Commission. The audit of local debt will be completed this month, according to Vice Finance Minister Zhu Guangyao.
Lou Jiwei, who was named finance minister in March, said this month that the scale of local government debt was controllable and that the pace of borrowing was slowing. In an interview with state broadcaster China Central Television, Lou said that while some local governments face “relatively big” debt problems, the risk of default was “not great.”
“Some local governments are a bit tight but they haven’t turned into non-performing loans,” Wu Lizhi, deputy director general for treasury and financial markets at China Development Bank Corp., said at the briefing today.
To contact Bloomberg News staff for this story: Aipeng Soo in Beijing at [email protected]
CCP CHINA in DECLINE

Port Moody, Canada

#3 Sep 16, 2013
The State Council, China’s cabinet, ordered a nationwide audit of local government debt in July on concerns that slowing economic growth may leave some authorities unable to repay borrowings. Local Chinese governments have sidestepped rules barring them from directly taking bank loans and selling bonds by setting up thousands of companies to do so instead, raising funds to build roads, bridges and sewage systems.
“Many local governments are under pressure from a capital shortfall as they need to fund public projects required for urbanization,” Liu said. China’s current system doesn’t meet their funding needs and as a result,“the issue of local government debt is in a situation of getting out of control.”

Out of control debt?

No growth and public spending tapped out?

The fall of the CCP's "house of cards" is inevitable.
CCP CHINA in DECLINE

Surrey, Canada

#4 Sep 17, 2013
"provincial and municipal authorities owe more than 20 trillion yuan ($3.3 trillion), said Liu Yuhui, a researcher at the Chinese Academy of Social Sciences.
That would be “way higher” than the level of debt at the end of 2010, Liu said at a briefing in Beijing today to announce that the academy and China Credit Rating Co. will jointly develop credit ratings for the country’s local governments. China’s National Audit Office said in a 2011 report that local authorities owed 10.7 trillion yuan at the end of 2010."

WOW!

ALMOST DOUBLED in ONLY THREE YEARS!
CCP CHINA in DECLINE

Surrey, Canada

#5 Sep 17, 2013
ALMOST DOUBLED in ONLY THREE YEARS!

Never happened before in ANY country!

This extreme level of deficit growth is unique to the dying Chinese Communist Party regime!
RayH

Shenzhen, China

#6 Sep 18, 2013
CCP CHINA in DECLINE wrote:
ALMOST DOUBLED in ONLY THREE YEARS!
Never happened before in ANY country!
This extreme level of deficit growth is unique to the dying Chinese Communist Party regime!
That's to counter the global financial crisis caused by your southern neighbor.

US$ 3.3. Trillion in debt is only 37 % of China's GDP this year. That's nothing compared to your southern neighbor, who's 106 % in debt to GDP ratio.
CCP CHINA in DECLINE

Surrey, Canada

#7 Sep 19, 2013
Yes, but the 37% of CCP China's GDP is only the debt of the local governments. The hidden debt of the central government and the state banks is far larger.
CCP CHINA in DECLINE

Surrey, Canada

#8 Sep 19, 2013
Also, keep in mind that China's money is in the total control of the Chinese Communist Party that is INFAMOUS WORLDWIDE for the BREATHTAKING scale of its CORRUPTION and THEFTS FROM THE PEOPLE!

The CCP couldn't hold a BAKE SALE without stealing all the money and having someone SHOT!

It wouldn't surprise me in the least if I read tomorrow that China is broke and in deficit finance mode!
RayH

Shenzhen, China

#9 Sep 20, 2013
CCP CHINA in DECLINE wrote:
Yes, but the 37% of CCP China's GDP is only the debt of the local governments. The hidden debt of the central government and the state banks is far larger.
A total of 50 something percent tops, half of your southern neighbor.
CCP CHINA in DECLINE

Port Moody, Canada

#10 Sep 20, 2013
So 50% of GDP plus 37% of GDP is 87% of GDP; not far behind US debt and RISING FAST.

But the burning question is how much has been secretly looted by the corrupt CCP thieves?
RayH

Shenzhen, China

#11 Sep 20, 2013
CCP CHINA in DECLINE wrote:
So 50% of GDP plus 37% of GDP is 87% of GDP; not far behind US debt and RISING FAST.
But the burning question is how much has been secretly looted by the corrupt CCP thieves?
You can't read, Miro-tard? 50 %, including local and national, half of your southern neighbor's 106 %.
CCP CHINA in DECLINE

Surrey, Canada

#12 Sep 22, 2013
BS, and you didn't say that, nor provide any source whatsoever, so how on earth can I read what is not there?

You CCP are SOOOO DUMB!
CCP CHINA in DECLINE

Surrey, Canada

#14 Sep 22, 2013
...
Leverage has been mounting on the mainland since 2008, when massive debts were raised to finance investment in roads, railways, airports and urban infrastructure in the wake of the global financial crisis. Meanwhile, bad loans in the banking system have climbed for seven consecutive quarters, with more soured loans believed to exist in the less-regulated shadow banking system.

"I'm concerned about the rapidly rising leverage in the country," said Wang Tao, an economist at UBS Securities. "In China, the problem has not been fully exposed; there must be more hidden debts."

Figures from the China Banking Regulatory Commission show that non-performing loans (NPL) at mainland commercial banks grew by 46.6 billion yuan in the first half of the year, resulting in an overall NPL ratio of 0.96 per cent. However, many analysts have said the figures underestimate the severity of bad loans on the mainland.

To postpone the bad-debt problem, banks have been rolling over loans to local government financing vehicles (LGFVs). The central government is also mulling the introduction of municipal bonds, to be sold by local governments, and plans to allow banks to sell LGFV-loan-backed securities to improve liquidity, according to academic sources.

However, these measures - transferring default risk from one party to another - do not tackle the root of the bad-loan problem, Wang said.

A key Communist Party meeting in November will be watched closely, with economists hoping for reforms of fiscal revenue distribution that will allow more types of revenue to flow to local coffers.

However, Wang cautioned that it would not be easy for the central government, local governments and related government departments to reach a consensus on such reform.

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