Investors Zero In on China Local Debt Blowup as Top Risk in Asia
- Local-government financing vehicles in China seen as key risk
- Bloomberg surveys more than 50 investors, strategists
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Investors across Asia earmarked China’s ballooning levels of municipal borrowing as the region’s number one financial risk this year in a survey that ranked their biggest concerns.
China local government financing vehicles, or LGFVs, were the most frequently cited top risk in a Bloomberg survey of 53 economists, money managers and strategists at financial institutions ranging from sovereign wealth funds to banks and pensions.