China taps public funds to ease risks from small, midsize banks

BEIJING — Chinese provinces and other local governments are escalating fundraising efforts to support small and midsize banks, hoping to curb risks to the financial system as bad loans become a serious problem.

Local governments issued 147.3 billion yuan ($20.3 billion) in special bonds meant to finance injections into banks during the January-July period, Chinese media report. The bonds were issued by 13 provinces, autonomous regions and prefecture-level cities, with the money going to 125 banks.