China's financial system remains plagued by trillions of dollars in local governments' hidden debt, as they have long turned to off-the-books borrowing to plug funding shortfalls, which have grown significantly due to the pandemic and property crisis.
Caixin
China's trillion-dollar dilemma of local government 'hidden debt'
Drastic steps may be needed to solve problem driven by COVID, property crisis
Local authorities have accumulated trillions of dollars of off-the-books liabilities, which may require bold steps by the central government to rectify. © Reuters
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