30% of China's local governments may face severe debt strain: S&P

Infrastructure bonds and COVID curbs squeeze budgets hit by real estate slump

20220714N China bridge

A railway project in China's Jiangsu Province. © Kyodo

IORI KAWATE, Nikkei staff writer

BEIJING -- Almost a third of local and regional governments in China could be in dire enough financial straits at the end of this year to require corrective action such as cutting spending, as growing interest burdens and shrinking income from land sales continue to batter budgets.

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