High-interest off-balance sheet funding has been swapped with the issuance of low-interest local government bonds; that is good for local governments but comes at the cost of putting more pressure on banks and other lenders by reducing their interest income.
With regard to addressing financial risks in the corporate sector, so far, the central government appears to have taken a relatively hands-off  12  The rate of growth of financing has picked up noticeably (to around 17 per cent in year-ended terms, once the swapping of local government off-balance sheet borrowing for local government bonds has been taken into account).