local government financing vehicle


  • It usually exists in the form of an investment company that sells bonds in the bond markets to finance real estate development and other local infrastructure projects.

  • [1] In 2019, LGFV bonds constituted 39% of total outstanding corporate bonds in China’s domestic (onshore) bond market, with widely varying credit risks.


Works Cited

[‘Kozhevnikov, M. Yu. (2019). “Debt of Local Governments of China: Assessment Issues and Analysis”. Studies on Russian Economic Development. Pleiades Publishing Ltd. 30 (6): 714–716. doi:10.1134/s1075700719060066. ISSN 1075-7007.
2. ^ “Offshore and
onshore LGFV bond issuance to reach record highs in 2019”. Moody’s. August 28, 2019. Retrieved 16 February 2021.
3. ^ “Risk Comes Home as LGFV Dollar Debt Cocktails Sold in China”. Bloomberg News. 9 February 2017. Retrieved 3 October 2021.
4. ^
Clarke, Donald C. (June 5, 2016). “The Law of China’s Local Government Debt Crisis: Local Government Financing Vehicles and Their Bonds”. Search eLibrary. Retrieved February 16, 2021. Photo credit: https://www.flickr.com/photos/mags_eb/5089363428/’]