Equity Analysis /

Never mind Chinese real estate, LGFVs are the big problem

    Anne Stevenson-Yang
    Anne Stevenson-Yang

    Director of Research

    J Capital
    22 September 2022
    Published byJ Capital

    Things are getting worse, not better: The gap between local government income and expenditure has grown as the year has progressed in 2022. The only avenue for bailout appears to be the central government. We wonder whether the tax-sharing arrangement originally worked out in 1994 may have to change.