China to coordinate support to resolve local govt debt risks

[superadmin]

BEIJING: China will coordinate financial support to resolve local government debt problems, the central bank said in a statement today, as policymakers look to shore up an increasingly shaky economic recovery and reassure worried investors.

The statement, following a joint meeting on Friday by the People’s Bank of China (PBOC), the country’s top financial regulator and the securities regulator, comes amid growing concerns that China’s deepening property crisis is starting to spill over into its financial system.

China unexpectedly lowered several key interest rates earlier last week in a bid to shore up activity and it is expected to cut its prime loan rates on Monday, but analysts say moves so far have been too little, too late, with much more forceful measures needed to stem the economy’s downward spiral.

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