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Tracking Credit Events at LGFVs

The downturn in China’s property market has significantly slowed the economy over the past year. One major casualty is local government financing vehicles (LGFVs), as declining land sales revenues reduce local governments’ capacity to support these firms. Additional credit events at LGFVs will emerge in the months ahead. Corporate acceptances are the first products facing defaults, while LGFVs are still trying to avoid defaults on publicly traded bonds.

Posted September 26, 2022
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