[Epoch Times October 05, 2021]On October 5, the “City Debt Ratio Ranking List” was released on the mainland, which showed that the level of debt in various regions of the mainland was uneven. Beijing’s debt ratio is 10 times that of Shenzhen, and Guiyang’s local government debt ratio is 929%.
Databank and Tencent Finance jointly launched the “City Debt Ratio Ranking” on the 5th. According to the news of Databao on October 5, 86 cities such as first-tier, new first-tier, second-tier, provincial capitals, etc. are used for analysis (due to missing data, some cities are selected in the text, due to differences in statistical caliber, the data in the text is for reference only), passed Calculate the government debt ratio and debt ratio based on the balance of local government debt and urban investment bonds in 2020.
In terms of debt ratios, the debt ratios of 85 cities will exceed 100% in 2020, and the debt ratios of 75 cities will double that of 2019.
The top 10 cities with debt ratios have debt ratios exceeding 500% in 2020, including: Guiyang, Harbin, Kunming, Xi’an, Nanning, Tianjin, Wuhan, Changchun, Chongqing, and Lanzhou. Among them, the debt ratio of Guiyang is as high as 929%.
Among the four first-tier cities, Guangzhou has the highest debt ratio in 2020, exceeding 200%; Shenzhen has the lowest debt ratio, less than 20%; Beijing has a debt ratio of more than 200%, which is more than 10 times that of Shenzhen; and Shanghai has a debt ratio of 122%.
From a geographical point of view, among the provincial capitals, the top debt ratios are all located in the northwest region, and Xining, Hohhot, and Lanzhou all have debt ratios exceeding 400%. According to the news, in these cities in the northwest region, although the balance of local government debt is not high and the urban investment debt is also low, the debt ratio is relatively high due to general fiscal revenue.
From the perspective of debt ratio, the top ten provinces and cities with debt ratio in 2020 are Tianjin, Guizhou, Yunnan, Xinjiang, Heilongjiang, Hainan, Shaanxi, Chongqing, Gansu, and Qinghai. Among them, Tianjin’s debt ratio is 79.29%, ranking first.
The debt ratio of economically underdeveloped regions is relatively high, and the average debt ratio of provinces such as Guizhou, Yunnan and Xinjiang ranks first. Fujian and Guangdong are lower.
The debt ratio is the balance of government debt at the end of the year/the government’s comprehensive financial strength, reflecting the solvency of the local government.
The debt ratio is the balance of government debt/GDP at the end of the year. On the one hand, this value can measure the economic scale’s ability to bear debt, and on the other hand, it can measure the GDP that a unit of government debt can generate.
Editor in charge: Liu Yi#
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