China unveils 10tn yuan support for debt-stricken local government

Cash stops short of hoped-for ‘bazooka option’ with critics calling it ‘an accounting exercise’ unable to boost growth

China has announced 10tn yuan in debt support for local governments and other economic measures, but stopped short of the “bazooka” stimulus package that many analysts had expected.

The fiscal package included raising debt ceilings for local governments by 6tn yuan (£646bn) over three years, so they could replace hidden debt, which authorities said stood at 14.3tn yuan by the end of 2023.