02075cas a2200265 a 4500 AALejournalIMF014388 230101c9999 xx r poo 0 0eng d 5.00 USD 9781484335895 1018-59411 BD-DhAAL BD-DhAAL Lu, Yinqiu. Local Government Financing Platforms in China: A Fortune or Misfortune? Chinese Local Government Financing Platforms in China : A Fortune or Misfortune? / Yinqiu Lu, Tao Sun. Washington, D.C. : International Monetary Fund, 2013. 1 online resource (30 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students China's rapid credit expansion in 2009-10 brought local government financing platforms (LGFPs) into the spotlight. This paper discusses their function, reasons behind their recent expansion, and risks they are posing to the financial sector, local governments, and sovereign balance sheet. This paper argues that LGFPs were a fortune for China in the past, but would turn out to be a misfortune if the causes of the rapid expansion of LGFPs are not addressed promptly. In this context, the paper proposes ways to avoid misfortune by: acknowledging and addressing the revenue and expenditure mismatches at the local government level; establishing a comprehensive framework to regulate and supervise local government budgets; ensuring the sustainability of the financial resources obtained from the sale of land use rights; and developing local government bond markets and promoting financial reforms. Mode of access: Internet Sun, Tao. IMF Working Papers; Working Paper ; No. 2013/243 Full text available on IMF http://elibrary.imf.org/view/journals/001/2013/243/001.2013.issue-243-zh.xml IMF e-Library