China is currently facing a staggering $800 billion in defaults in its non-standard debt market. Much of this debt is tied to Local Government Financing Vehicles (LGFVs), which issue fixed-income investments that aren’t publicly traded and are primarily used to fund infrastructure projects. Analysts estimate the size of this non-standard debt market to be massive, and recent data shows an alarming increase in defaults. In just the first nine months of 2024, 60 non-standard debt products tied to LGFVs have either defaulted or flagged repayment risks—up 20% compared to the same period last year. This surge has set a record...