Chinese municipal debt nears $3T

|By:, SA News Editor

Chinese local-government liabilities stood at 17.9T yuan ($2.95T) at the end of June, a major new report shows, with the number up from 10.7T yuan the last time a full audit took place in 2010.

The figure includes direct debt as well as guarantees and other potential liabilities, China's National Audit Office said.

The report comes as the country's short-term money market rates calm down after spiking earlier this month when the central bank refrained from injecting liquidity into the system as part of its efforts to rein in soaring debt. The seven-day repo rate dropped to 4.89% today from 5.1% on Friday and 8.94% a week ago.

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