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China urged to issue 30 trillion yuan in bonds to tackle local debt crisis

China should issue 30 trillion yuan (US$4.2 trillion) in treasury bonds to swap local governments’ hidden liabilities to re-energise growth momentum and cut off financial risks at their root, a Beijing-based think tank has proposed. Such a move, combined with a few trillion yuan worth of additional bonds to shore up the property market, boost consumption and remove excessive industrial capacity, would be a strong step toward resolving China’s local-level debt and real estate crises once and for...


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