China moves to correct irregular local gov't financing

Updated 2017-05-04 09:30:36 Xinhua

China is moving to correct irregular behavior in the fundraising of local governments as part of efforts to rein in financial risks amid a firming economy.

In a notice released Wednesday, the Ministry of Finance (MOF) asked provincial authorities to start self-examining their financing practices as soon as possible and to rectify all irregularities by the end of July, with progress to be tracked by MOF local supervisors.

The relationship between governments and local financing platforms should be properly handled, and the latter should transform into market-based state-owned enterprises that can stay clear of government intervention.

Local governments are allowed to set up investment funds with private companies and conduct public-private-partnership cooperation, but debt financing is strictly prohibited.

The MOF will take actions to improve financing systems of local governments, establish a monitoring and risk control mechanism, and promote better information disclosure.

Chinese financial regulators are channeling more energy into risk control and de-leveraging as solid GDP growth in the first quarter has provided more room for such adjustments.

Also in the News

Nicole Kidman Recalls Oscar Glory: Loneliest Time
Showbiz2016/06/16 13:58August 22 2017 05:42:19

Nicole Kidman Recalls Oscar Glory: Loneliest Time

Attending Shanghai International Film Festival, Nicole Kidman talks about her role in "Grace of Monaco".

Labor Day Travel Peak Starts
Also in the News2014/05/01 12:16August 22 2017 05:42:19

Labor Day Travel Peak Starts

Johnny Depp Delivers a Speech 'Evolve the Future' in 'Transcendence'
Also in the News2014/04/18 13:18August 22 2017 05:42:19

Johnny Depp Delivers a Speech 'Evolve the Future' in 'Transcendence'

Hollywood star Johnny Depp's speech in the upcoming new film "Transcendence" has been disclosed on Friday, April 11th.

Most Watched

News:
China World Business Sports Showbiz Audio
Video:
C4 My Chinese Life The Sound Stage China Revealed Showbiz Video Travel Video
Photos:
China World Fun Travel Entertainment Sports
Travel:
Beijing Shanghai Guangzhou
Lifestyle:
Live Music Opera & Classical Movies Traditional Shows Exhibitions
Learn Chinese:
Chinese Studio Living Chinese Everyday Chinese Just For Fun Chinese Culture Buzzwords