Happy Lunar New Year from the USC US-China Institute!
Local Government Financing Vehicles in China and their Debt: The Legal Picture
The Sigur Center for Asian Studies presents Professor Donald Clarke. He will address questions about China's local government financing vehicles (LGFVs) through an analysis of applicable law and a sample of LGFV bond prospectuses.
Where
Local governments in China have long been barred from borrowing on their own, and so have turned to wholly-owned corporations to raise money for infrastructure and other projects by borrowing. These corporations are known as local government financing vehicles (LGFVs). Given that local governments are also forbidden to guarantee the debts of third parties, what assurance do lenders to LGFVs have that they will be repaid? Are local governments making promises that are not only financially imprudent but legally unenforceable? Who will bear the burden of unpaid debt if LGFVs cannot repay their loans?
This talk will address these questions through an analysis of applicable law and a sample of LGFV bond prospectuses.
Donald Clarke is David Weaver Research Professor of Law at GW. A specialist in Chinese law, he joined the Law School faculty in spring 2005 after teaching at the University of Washington School of Law in Seattle and the School of Oriental and African Studies at the University of London, as well as practicing for three years at a major international firm with a large China practice. He is fluent in Mandarin Chinese, and has published extensively in journals such as the China Quarterly and American Journal of Comparative Law on subjects ranging from Chinese criminal law and procedure to corporate governance. His recent research has focused on Chinese legal institutions and the legal issues presented by China’s economic reforms. He is a member of the New York Bar and the Council on Foreign Relations.
This is a brown bag event. Beverages will some refreshments will be provided.
Featured Articles
We note the passing of many prominent individuals who played some role in U.S.-China affairs, whether in politics, economics or in helping people in one place understand the other.
Events
Ying Zhu looks at new developments for Chinese and global streaming services.
David Zweig examines China's talent recruitment efforts, particularly towards those scientists and engineers who left China for further study. U.S. universities, labs and companies have long brought in talent from China. Are such people still welcome?