Some local governments to issue direct debt
China will allow 10 provinces and cities to make direct bond issues starting this year, a move that financial experts said might signal full rights for all local governments to issue debt to support the urbanization drive.
The central government will announce the plan later this month, and bonds will likely be issued in early July, the Wall Street Journal reported on Monday, citing an anonymous source. A source with the Ministry of Finance confirmed the report to China Daily, saying that the ministry will set a ceiling for each government, but he declined to give further details.
The reported plan is in line with a move last month, when the national legislature proposed a draft amendment to the budget law, suggesting that local governments should be able to sell municipal bonds under narrow parameters.
A child walks on a display containing 500 kilograms of gold bullion valued at about 150 million yuan ($24 million). The precious metal is on display at a real estate marketing center in Zibo, Shandong province.