Debts 02 - Govt etc (Nov 16 - Jan 24)

[winston]

How China’s hidden debt risk ‘comes from its system’, and why local governments are beholden to Beijing

China’s zero-Covid policies and post-pandemic push for self-sufficiency, have strained finances at local levels, pushing debt sky high this year, with little help from the central government

Some say Beijing is reluctant to change China’s fiscal structure because it gives leaders greater financial control over the provinces

by Amanda Lee

Source: SCMP

https://www.scmp.com/economy/china-econ ... e=homepage

[behappyalways]

Interest payments on US government debt are soaring
https://twitter.com/Mayhem4Markets/stat ... 8773425152

[winston]

Analysis - China can no longer 'extend and pretend' on municipal debt

by Kevin Yao and Samuel Shen

After years of over-investment in infrastructure, plummeting returns from land sales and soaring COVID costs, economists say debt-laden municipalities now represent a major risk to China's economy.

Local government debt reached 92 trillion yuan ($12.8 trillion), or 76% of economic output in 2022, up from 62.2% in 2019. Part of it is debt issued by local government finance vehicles (LGFVs), which cities use to raise money for infrastructure projects. The International Monetary Fund expects LGFV debt to reach $9 trillion this year.

Source: Reuters

https://finance.yahoo.com/news/analysis ... 19657.html

[behappyalways]

The US Corporate Debt Maturity Wall
https://twitter.com/AyeshaTariq/status/ ... 2417057793

[behappyalways]

China To Bail Out 1 Trillion Yuan In "Hidden" LGFV Debt By Shifting It To Provinces
https://www.zerohedge.com/markets/china ... -provinces

[behappyalways]

No wonder rate hikes have had almost no impact on corporate interest expense so far
https://twitter.com/MichaelAArouet/stat ... 1332799566

[behappyalways]

China's LGFV debt is above 50% of their GDP. It is estimated that the debt is about $9 Trillion.
https://twitter.com/AyeshaTariq/status/ ... 3574647270

[behappyalways]

The bottom 50% of the S&P 1500 are being hit harder by rising rates as more of their debt is not fixed rate

It is instead part of what are called revolvers, or revolving interest rate loans

One reason that smaller to medium-sized companies are feeling the brunt of these hikes
https://twitter.com/Mayhem4Markets/stat ... 5481415725

[behappyalways]

Americans owe nearly $2T in student debt!
https://twitter.com/Mayhem4Markets/stat ... 3733704060

[behappyalways]

Roadblocks to recovery! China's "small villages, big debts" crisis is exposed.
700,000 villages owe debts as high as NT$4 trillion...
Old debts + new debts are snowballing as construction begins

復甦攔路虎!揭中國"小村大債"危機 70萬個村莊欠債高達4兆台幣...大搞建設 舊債+新債滾雪球｜非凡財經新聞｜20230905

https://m.youtube.com/watch?v=qvsftzdkd1k