Local government financing vehicle

They hold about three quarters of LGFV debt, I think.

Defaults by LGFVs on public bonds have remained extremely rare, even though LGFV defaults on the so-called non-standard debts have indeed been going up.

Beijing has so far prevented LGFV bond defaults by doing these restructurings that we just discussed.

interest rates are now lower and maturity of local governments' debt stock is a lot higher, longer now.

And last one of the day, one of the largest local government finance vehicles in China may be about to go kablooey.

Now, LGFVs or local government finance vehicles, that's when local governments set up these government-owned shell companies that build buildings and infrastructure projects and take on all the debt.

It's not technically government debt.

It's a private company, but it's controlled by the government.