China's Finance Minister Lan Fo'an speaks at a press conference on a plan to boost the economy at the Great Hall of the People in Beijing, November 8, 2024
CHINA approved a six trillion yuan (around £641 billion) plan today to help local governments refinance their debt, in the latest push to stimulate growth in the world’s second-largest economy.
The plan will be implemented over the next three years, Xu Hongcai, vice-chairman of the National People’s Congress financial and economic committee, told a news conference.
Finance Minister Lan Fo’an estimated that the hidden debt of local governments was 14.3trn yuan (£1.5trn) at the end of 2023. In contrast to most Western countries, the bulk of China’s public-sector debt is held by local and provincial government, not by the central government.
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