Regional budgets to feel the pinch

Local govts to seek new financing channels amid tighter regulation

Local governments might need to expand their financing channels and rely on more financial support from the central government to weather pressure on infrastructure spending this year, as recent heightened regulation is tightening their purse strings, according to analysts.

A number of regions such as Guangdong have revised down their fixed asset investment targets this year compared to 2017, indicating the likelihood of slower growth in infrastructure spending, they said.