China launches a MASSIVE $1.4 trillion debt swap program

ICYMI, China's rolling out a huge $1.4 trillion (10 trillion yuan) plan to help local governments tackle debt and boost the economy.

What it is:

Local governments can swap their "hidden debt" by issuing six trillion yuan in new bonds over the next three years.

And if that's not enough, they have another four trillion yuan lined up over the next five years.

Authorities estimate this debt swap will save about 600 billion yuan in interest over five years. 😲

This is the first time since 2015 that they've raised the debt ceiling mid-year.

So yeah, they mean business.

With Chinese growth recently slowing to 4.6%—the weakest in over a year—China's pulling out all the stops:

↳ Helping out real estate

↳ Giving stocks a push

↳ Cutting rates

So, with all this cash on the table, do you think China will hit its growth target?

And, is local government debt in China a problem?