Beijing is to provide fresh funding for Chongqing amid concerns that the purge of its Communist party chief Bo Xilai could hit the vast city’s housing and infrastructure projects that have fuelled its recent economic boom.
During Mr Bo’s five-year tenure, the municipality of 30m people in south-west China spent big on public housing, infrastructure, security and urban renewal, helped by a lending spree by local banks.
The projects and the resulting boom were an important part of Mr Bo’s populist political appeal that underpinned his rise to senior national leadership.
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