A recently issued official circular has put China’s long-running problem with hidden local government debt back in the spotlight. Earlier this month, the Ministry of Finance (MoF) and the Central Commission for Discipline Inspection (CCDI) jointly outlined six typical cases spanning six provinces where local authorities had fallen short of targets to resolve unrecorded liabilities. “For hidden-debt penalty announcements, it is unprecedented to have the CCDI alongside the MoF,” said Qiao Yide,...