Some lo­cal gov­ern­ments to is­sue di­rect debt

China Daily (Canada) - - NEWSCAPSULE -

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.

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