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    Nation's central bank sets its sights on 'zombie' financing vehicles

    By Zheng Yangpeng | China Daily | Updated: 2014-01-18 08:00

    The People's Bank of China has reiterated its resolve to root out "zombie" local government financing vehicles this year and ensure that urbanization funding moves through standard market channels.

    The central bank said in an online statement on Thursday that it will "exhaustively clean up" local government financing vehicles that "have poor credit, ambiguous functions and unsustainable financial conditions".

    These vehicles are separate agencies created by local governments to finance massive spending on highways, stadiums or public works. Their creation followed the 2008 stimulus program that helped China rebound quickly from the global financial crisis and subsequent economic downturn.

    Nation's central bank sets its sights on 'zombie' financing vehicles

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