Shanghai Securities News reported on October 17 that the national audits of local governments’ debts are coming to an end and that such debts are estimated to be as high as 24 trillion yuan, which amounts to 40 percent of GDP.
Since July 2013, Chinese authorities have quietly conducted an unprecedented national audit of local government debts. It is anticipated that the audit will be completed soon. While the consensus is that the local government debts will be over 10.7 trillion yuan, the China Chengxin (Asia Pacific) Credit Ratings Co., Ltd. estimated the number will be as high as 16 trillion. Others believe the number could be between 21.9 trillion to 24.4 trillion. That would amount for 38 to 42 percent of China’s GCP.
Source: Shanghai Securities News reprinted by Sina.com, October 17, 2013 http://finance.sina.com.cn/china/20131017/021817016037.shtml