China finds $84bn local government debt irregularities

China has uncovered 531bn yuan ($84bn; £54bn) of irregularities in local government debts.

The National Audit Office said breaches included "irregular credit guarantees", "irregular collateral" and "fraudulent and underpayment of registered capital".

There are growing concerns about the amount of bad loans being held by local governments.

Official figures show they held debt of 10.7tn yuan ($1.7tn; £1.1tn) in 2010.

"The State Council is studying proposals to enhance local government debt management and to address fiscal and financial risks," the audit office said in the report.