Moody’s: China to face significant funding shortfalls amid coronavirus outbreak

China’s regional and local governments (RLG) are expected to face significant funding shortfalls in 2020 as the coronavirus outbreak is set to further pressure already slowing revenue growth, Moody’s Investors Service said in a new report.

“We expect the coronavirus outbreak will result in lower RLG revenue growth, although policy measures by the central government should support RLGs through higher transfers and bond quotas,” Jack Yuan, an assistant vice president and analyst at the firm said on Thursday.

Most Chinese provinces have cut their GDP growth targets for 2020, the ratings agency added.

Source: CNBC