Local govt debt could trigger financial crisis

BEIJING - The nation's chief auditor warned on Wednesday that local government debt will pose risks to the Chinese economy amid concerns that the debt could trigger a European-style financial crisis.

The ratio of debt to disposable revenues at some local governments has exceeded 100 percent, with the highest standing at 365 percent.

"The scale is large, and the burden is quite heavy," Liu Jiayi, director of the National Audit Office, said while making an annual audit report to the top legislature.