China's "hidden" local government debt was estimated to have reached as high as 58 trillion yuan (HK$64.7 trillion) by the end of last year, which was up to 1.7 times higher than the bonds that were known to have been issued, according to a Caixin report citing China Chengxin Credit Rating Group. China Chengxin, the first nationwide credit rating company in China, warned this would mean local government debt could be up to a high of 92 trillion yuan overall. It estimated that local governments' so-called "hidden" debts stood between 52 and 58 trillion yuan, or 1.5 to 1.7 times more than their "explicit" debts. The city's current "hidden" debts are estimated to be around 92.84 billion yuan, adding pressure to servicing debts and leaving limited room to resolve its debt crisis through alternative means. Although the mainland economy is recovering from the pandemic, local governments' revenue from land sales has continued to be sluggish.
