Reported about 1 month ago
Defaults in China's local debt market have reached a record high, totaling approximately $800 billion, affecting investors who believed these debts were implicitly guaranteed by the state. Despite the government's efforts to support local financing through bond issuance, non-standard products tied to local government financing vehicles (LGFVs) have seen a significant increase in defaults, frustrating retail investors who have seen their savings vanish. While there is potential for future support through new bond issuances, the outlook remains uncertain and many retail investors are left desperate for assistance.
Source: YAHOO