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.