Problem debts of local govt units 'may be 2 trillion yuan'

BEIJING - The debts of local government-backed investment units in China reached 7.66 trillion yuan ($1.15 trillion) by the end of June, of which 2 trillion yuan is questionable, China Securities Journal on Thursday quoted an anonymous source as saying.

The report said the figure is the result of a national assessment and classification by regulators that started at the beginning of this year.

The China Banking Regulatory Commission (CBRC) classified one-fifth of the debt as "questionable" in July.