China's $195 billion debt splurge has less bang than you might think

As China seeks to buffer its economy and shield it from the trade war with US, the difficulties around bond program heighten the chances China will just increase indebtedness without stoking growth

China’s burst of local bond issuance to pay for infrastructure and support the flagging economy is being hampered by a lack of available projects and the negative effect it’s having on private sector funding.

Earlier this year, central government attempted to counter the economic slowdown by ordering the accelerated sale of special infrastructure bonds, and provincial authorities have responded enthusiastically: A flurry of sales in August and September means that 92 per cent of the 1.35 trillion yuan ($195 billion) target for the year had been sold by the end of last month.

However, about 42 per cent of the total special