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China's local government debt falls below 70% of GDP by 2027

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user-generated· macro

China's local government debt falls below 70% of GDP by 2027

Market overview

China's new measures, including stricter borrowing caps and asset sales, will reduce local debt from ~75% of GDP in 2026 to below 70% by 2027. The deleveraging push signals Beijing's commitment to fiscal discipline.

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Implied probability (Yes)
70%

Source: user-generated

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