Beijing should restructure local debts, issue bonds: HSBC
Beijing is in urgent need to restructure its local debts to avoid bank defaults, HSBC argues. As more than 50% of total debt will mature by the end of 2013, HSBC thinks Beijing will need to take action to prevent a major bank default.
Beijing is facing liquidity problem and it should quickly restructure the local government debts to avoid bank defaults, HSBC pointed out in a research note published on Monday (Aug 1). The lender also suggested the authority to issue municipal bonds to enable local governments paying back bank loans.
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