Davis Sun, Senior Director at Fitch Ratings, provides a progress report on China’s debt substitution plan and its impact on local government vehicles (LGFVs) and finances, as well as an outlook for 2026 and beyond.

• (00:23) - Introduction
• (01:50) - Recent LGFV Sector Developments
• (05:40) - Progress of the Debt Substitution Programme
• (09:45) - LGFV Financial Health Amid Debt Substitution
• (13:17) - Fiscal Impact of Debt Substitution on Local Governments
• (16:00) - Lingering LGFV Debt Risks
• (20:34) - Local Government Infrastructure Spending
• (22:53) - 2026 Local Government Fiscal Outlook
• (25:08) - Conclusion