The Chinese island province of Hainan has a debt to gross domestic product ratio of around 93%, a level that is still manageable, according to Provincial Vice Secretary Jiang Dingzhi.

As worries over China's local government debt have intensified, Hainan has emerged as a province of special concern, with one of the highest levels of debt carried by local government financing vehicles.

In prepared remarks to be delivered Saturday but released on Friday, Jiang said Hainan's debts have grown quickly as it used the financing vehicles to build out its less-developed infrastructure.

At the end of 2010, Hainan's total debt came to CNY95.3 billion ($15 billion), or 93.18% of the province's GDP, he said.

Still, he said Hainan's debt risks "are within a safe and controllable range."

"We pay strong attention to government debt problems, and we will further regulate government debt and step up supervision to prevent debt risks," he said in the prepared remarks. 
 
 
SOURCE: nasdaq.com
 
 
 
 

 

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