China has launched a 10 trillion yuan debt refinancing program to support the economy
China has announced a 10 trillion yuan ($1.4 trillion) debt refinancing program for local governments through 2028 to support an economy facing risks after Trump's re-election. Xi Jinping called the debt of local authorities one of the key financial risks.
China has announced a large-scale debt refinancing program for local governments totaling 10 trillion yuan (about $1.4 trillion), which will be implemented by 2028. This initiative is aimed at supporting the country's economy, which is facing new challenges and risks due to the re-election of Donald Trump. President Xi Jinping noted that the debt of local governments is one of the three main financial risks that China is currently facing. The debts are mainly related to local government financing funds, which raise funds for large infrastructure projects on behalf of provinces and cities. In recent years, local authorities, relying on income from land sales, have found themselves in a difficult position due to a decrease in demand for new construction caused by the real estate crisis. The refinancing program is aimed at easing the debt burden, as well as stimulating economic growth through new infrastructure investments.
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