This is a China news story, published by CNBC, that relates primarily to S&P Global Ratings news.
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Chinese banksCNBC
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88% Informative
Analysts are looking at connection between China 's real estate slump and local governments' financing.
"Macroeconomic headwinds continue to hinder the revenue-generating power of China 's local governments," says S&P Global Ratings .
The bulk of Chinese household wealth went into real estate in the last two decades .
Beijing began cracking down on developers' high reliance on debt in 2020 .
China 's debt-to-GDP has climbed by almost 30 percentage points to 310% of GDP in the second quarter of 2024 .
Local government-affiliated business entities have taken on significant levels of debt to fund public infrastructure projects.
The LGFV sector is a "bigger grey rhino than real estate," Natixis' Alicia Garcia-Herrero said.
VR Score
93
Informative language
95
Neutral language
53
Article tone
formal
Language
English
Language complexity
62
Offensive language
not offensive
Hate speech
not hateful
Attention-grabbing headline
not detected
Known propaganda techniques
not detected
Time-value
short-lived
External references
4
Source diversity
4
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