Land Audit Results Start

Not good.
China's top auditor warns of local debt risks
A recent audit of nine provinces, nine cities and nine counties found local government debt at the end of 2014 was 46 per cent higher than the 2013 level, Xinhua quoted Liu as saying.

But debt grew at a much slower rate this year, expanding just 0.1 per cent during the first three months, it added.

Nomura, the Japanese bank, estimated in a recent research note that by 2014 local government debt had actually reached 22.6 trillion yuan.

Local governments have been allowed some local governments to high-interest, mostly off-balance sheet local government debt for municipal bonds with lower yields.

Separately, Xinhua quoted Liu as saying authorities have investigated more than 2,200 government officials for involvement in major fiscal fraud.

Auditors also found that some 780 billion yuan in land transfers funds were misappropriated by officials to fill administrative expenses gaps, lent to others or used to construct new office buildings and venues, Xinhua said.

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