In yet another accounting error (or not), a sovereign nation accidentally missed a large amount of debt that it owes. Bloomberg (via The Economic Observer) is citing data from Beijing Fost Economic Consulting that ~3tn yuan ($473bn) of debt in township governments was not included in China's National Audit Office reports. This is not a drop in the ocean as it raises the local government debt load by around 30% and represents debt in vehicle financings and bank loans. Of course, we should remain calm and walk (not run) to the exits as GDP, inflation, and whichever macro data point you choose that has subliminally met expectations recently is completely accurate - have no fear.
China’s National Audit Office didn’t include ~3t yuan ($473b) of debt in township governments in report, Economic Observer says, citing data from Beijing Fost Economic Consulting Co.
China’s local govts. of 4 levels may have 13.5t yuan in debt vs 10.7t yuan reported by audit office: Observer
Debt in local govt. financing vehicles, bank loans underestimated in audit report: Observer
Duyang town in Guangdong province has >200m yuan of debt vs annual fiscal income of 500,000 yuan: Observer