There has been much chatter about bank loans to local governments’ financing vehicles, widely regarded as one of the main risks face the Chinese economy. Set up by local (1)______ governments to borrow money for infrastructure investments, these vehicles are rather like Western companies’ special purpose entity vehicles. They have (2)______ played an important role in stimulating the Chinese economy and helping it to recover from the global financial crisis. But they face a problem, either: The bank loans they (3)______ have received have increased extraordinary. (4)______ Local governments at levels have set up their (5)______ investment companies, some of which are directly controlled by the leaders responsible for fundraising for their pet projects. These companies take a variety of forms dependable on the industries and sectors they belong to. (6)______ There are thousands of such companies across the country, in which sometimes are even irregular. Some of (7)______ them, particularly those operating at the county-level, will not be able to service their debts. it is thus reasonable to be alarmed. But it is still too late (8)______ to say that the level of non-performing bank loans will increase drastically even we cannot estimate the precise (9)______ number and amount of loans given to local governments until the formal assessment is completed at the end of this year. To general the special vehicles’ business model we (10)______ have to go back in history.