Audit Finds Chinese Provinces Raiding Pensions as Local Debt Swells Toward GDP Size

Chinese auditors say provinces siphoned billions from pensions, school and farm aid, highlighting a local debt crisis that now rivals half of China’s economy.
Audit Finds Chinese Provinces Raiding Pensions as Local Debt Swells Toward GDP Size
Hu Axiang, 88, receives her first pension at her home in Shanghai, China, on Sept. 28, 2006. China Photos/Getty Images
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News Analysis
China’s auditors say local officials have been raiding pension accounts, school budgets, and farm aid funds to keep the lights on and service a mountain of local debt. Borrowing is now estimated at more than half the size of the national economy, according to research by global banking group BBVA.