Help
Quote
Chinese premier Wen Jiabao has vowed to "break monopolies" barring private capital participation in the financial sector.
In a speech made earlier this month at the government's flagship financial work conference, Mr Wen promised to "relax entry" requirements to encourage private capital to participate in the sector.
Mr Wen also pledged to contain and defuse local government debt risks and avoid the spread of financial risks.
"Currently, our government debt is overall safe and controllable," he said.
"We are taking the issue of managing local government debt very seriously.
"Through clean-ups and regulation, the trend of expanding investment vehicles has been effectively contained."
China's state audit office said earlier this month it had uncovered 530 billion yuan ($78.8 billion) worth of irregularities involving local government debt.
But the figure is a fraction of the 2 to 3 trillion yuan of sour loans economists believe are buried in the 10.7 trillion yuan ($1.6 trillion) of debt local governments had at the end of 2010.
The scale of debt worries investors because it could rock the banking system.
In a speech made earlier this month at the government's flagship financial work conference, Mr Wen promised to "relax entry" requirements to encourage private capital to participate in the sector.
Mr Wen also pledged to contain and defuse local government debt risks and avoid the spread of financial risks.
"Currently, our government debt is overall safe and controllable," he said.
"We are taking the issue of managing local government debt very seriously.
"Through clean-ups and regulation, the trend of expanding investment vehicles has been effectively contained."
China's state audit office said earlier this month it had uncovered 530 billion yuan ($78.8 billion) worth of irregularities involving local government debt.
But the figure is a fraction of the 2 to 3 trillion yuan of sour loans economists believe are buried in the 10.7 trillion yuan ($1.6 trillion) of debt local governments had at the end of 2010.
The scale of debt worries investors because it could rock the banking system.
edit - http://www.abc.net.a...?site=melbourne
This post has been edited by zaph: 30 January 2012 - 05:30 AM
