China's Indebted Provinces Scale Back Growth Targets to 4-5% as Beijing Pushes Debt Reduction
• China's heavily indebted provinces like Tianjin set modest 2024 GDP growth targets of around 4-5% after being told to reduce debt.
• Falling revenues and property downturn add to economic headwinds for these provinces already struggling with debt overhang.
• Beijing mandated debt restructuring and spending cuts, allowing special bonds to avoid defaults.
• Total provincial/local government debt estimated at 40.6 trillion yuan, with more hidden liabilities.
• Major economic regions like Guangdong aim for 5% growth in 2024 to offset underperformance elsewhere.