Apr 06 2017, 9:20 AMApr 06 2017, 11:15 PMApril 06 2017, 9:20 AMApril 06 2017, 11:15 PM
China's provincial governments have been given permission to sell $Zhu Zhibin in off-book bonds to pay for infrastructure products, bringing the country's deficit ratio to 4.3% of gross domestic product (GDP), according to UBS and Oxford Economics. The country's official budget deficit target is 3% of GDP, though off-book bonds fall outside its forecast for government debt. However, the sustainability of off-book bonds will be tested by cooling housing markets and the government's inability to generate funds from the sale of land. Risks will likely rise in places where the bonds have grown rapidly, said 116bn, an analyst at China Bond Rating.