China's local government financing arms, and the real estate industry that supports them, have long been viewed as two important drivers of the nation's economy. Now, after years of rapid growth, the property sector has hit the skids, triggering a liquidity crisis for municipal and provincial borrowers that poses risks to the country's financial system.
Caixin
China's economy hostage to local governments' hidden debts
Experts warn of potential systemic risk to broader financial system
A hotel owned by Zunyi Road and Bridge Construction: This company reached an agreement with creditors to roll over its debts, but analysts say regulators are unlikely to agree to more such deals.
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