Chinese authorities are likely to implement further measures to ease refinancing pressure at local-government financing vehicles (LGFVs), with the issue rising in priority for policymakers, says Fitch Ratings. We expect the measures to involve greater inter-governmental coordination and reflect a degree of policy continuity from current approaches, such as calling for provincial governments to take a greater role in managing the debt burdens of lower-tier local and regional governments (LRGs). However, some measures are likely to remain targeted and will not reduce LRGs’ rapidly climbing debt levels. The Politburo ... (full story)