Auditor warns local gov't debt risks

Top Chinese auditor office on Monday warned risks relating to some local governments' fast debt growth and their pressure to repay existing debt.

A four-month audit, by the National Audit Office (NAO), found liabilities of 3.85 trillion yuan (624.61 billion U.S. dollars) owed by 36 local governments, including Shanghai, Tianjin and Chongqing municipalities as well as Jiangsu, Guangdong and Shandong provinces, by the end of 2012.

The debt amount was 12.94 percent higher compared with the end of 2010, the NAO said.