Debt swap programme comes under review

Funding issue: A Chinese flag flies outside a residential compound in Beijing. Market attention is focused on the possibility of fresh public borrowing and spending for this year, which several economists consider unlikely given that there are only two months left to the year. — AFP

SHANGHAI: China’s top legislative body is reviewing a proposal to move some off-balance-sheet debt of local governments to their official accounts, paving the way for the first mid-year increase in the borrowing limit since 2015.

The National People’s Congress Standing Committee (NPCSC) met on Monday to discuss the plan to lift local governments’ debt ceiling to swap out their hidden debt, according to Xinhua News Agency.