China May Ramp Up Support for Local Govt Financing Vehicles: Caixin

The video discusses a significant weakness in China's economy related to the debt of Local Government Financing Vehicles (LGFVs). These vehicles, used by local governments to fund infrastructure projects, have accumulated substantial debt, estimated at around 8 trillion USD. However, the exact amount is uncertain. Many projects have not yielded the expected economic returns, leading to difficulties in debt repayment. The central bank is considering collaborating with banks to provide liquidity support to these LGFVs to ease their financial strain.

How has the economic outcome of the projects built by LGFVs been described?

What actions is the central bank considering to address the liquidity issues?