Part 2/11:
In a recent analysis, it has been revealed that China’s local governments are ramping up bond issuance to address hidden debt, exacerbating liquidity issues within the financial system. According to data compiled by Bloomberg, regional authorities plan to release approximately 1.69 trillion yuan (around 233 billion USD) in bonds during the first two months of 2025, representing an unprecedented level for this time period. Notably, about 850 billion yuan of this amount is designated for replacing off-balance-sheet debt.