Local government debt growth slows in H1

The growth of China's local government debt has drastically slowed since the last audit in mid-2013, which analysts said reflects regulators' yearlong curb but raises concerns that it could curtail the nation's debt-driven growth.

A spot check carried out by the National Audit Office showed that from the end of June 2013 to the end of March this year, outstanding debt at nine provincial and nine city-level governments across China grew 3.79 percent, 7 percentage points lower than the expansion rate during the first half of 2013, Xinhua News Agency reported on Sunday, citing NAO officials.

The report did not specify the provinces and cities being audited. It did not explain whether the "debts" referred to were those directly raised by local governments or loosely defined debt.