Following a desktop analysis
of 23 local government
financing vehicles (LGFVs)
in Hebei Province, we
have found that median
indicative issuer credit
quality is slightly higher
than the national median
level for LGFVs. Hebei
does not have a large
number of LGFVs, and we
regard the majority of
its city-level vehicles
as being very important
to local authorities,
with most LGFVs mandated
with financing local infrastructure
construction projects
and carrying out non-profit functions.