China's Hunt for Hidden Unpaid Government Bills to Reduce Financial Risk

China is conducting nationwide inspections to uncover hidden, unpaid debt across local governments, in an attempt to minimize financial risk. The surveying began in May, and the aim is to create a more comprehensive picture of liabilities at every level of government. Many local governments rely on companies known as "local government financing vehicles" to borrow money to fund projects that can't fit into official budgets, and their debts remain off the books. These financing vehicles pose a risk, as they struggle to turn a profit or make enough money to repay loans.