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 $ 116bn in off - book bonds to pay for infrastructure products , bringing the country 's debt ratio to 4.3 % of gross domestic product ( GDP ) , according to UBS and Oxford Economics . The country 's official budget deficit target is 10 % 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 revenue from the sale of land . Risks will likely occur in places where the economies have grown rapidly , said ya Zhibin , an analyst at China Bond Rating .