It already did that and has, in addition to inflation, created historically high property prices, vacant apartment buildings, and debt-swollen local governmentfinancingvehicles.
It added that policymakers need to put in place measures to "closely monitor and control the risks related to borrowing by local entities, especially local governmentfinancingvehicles".
But it is loans made to Local GovernmentFinancingVehicles (LGFVs), special companies set up to fund ambitious and often redundant infrastructure projects, that have attracted the greatest attention.