Key facts
- China's National Audit Office found 132.6 billion yuan ($19.5 billion) in problematic fund usage related to special-purpose bonds.
- The problematic usage was identified across nine provinces.
- The audit covered the year 2024.
- The findings come as China speeds up the issuance of these special bonds.
China's National Audit Office has identified 132.6 billion yuan ($19.5 billion) in funds that were used problematically by local governments across nine provinces in relation to special-purpose bonds (SPBs) during 2024. This discovery coincides with an acceleration in the issuance of these bonds by the country, raising questions about their repayment and management. The audit's findings highlight potential risks in how local governments are utilizing these financial instruments, which are often used to fund infrastructure projects and manage local debt.