China spawns new debt market to ease burden on local governments - BBG

Bloomberg out with yet another headlines on the Chinese economy, this time citing that China’s government is promoting a new tool to raise funds for infrastructure projects as debt levels at municipalities mount.

Key Points:

China is seeking to lure more private money into infrastructure projects, while limiting its responsibility for the debt needed to fund them

Debt levels at municipalities have risen, this is intended to ease the burden on them

Intended to bring more private money into infrastructure projects, and therefore less government debt