China 3-year local govt bonds auctioned at 4.01pc

SHANGHAI: China's finance ministry auctioned 23.6 billion yuan ($3.7 billion) of three-year bonds on behalf of seven regional governments at a yield of 4.01 percent, traders said on Monday.

The ministry has said it plans to issue a total of 200 billion yuan in bonds on behalf of local governments this year. Municipal and provincial governments are currently not allowed to raise funds in the debt market directly.

The heavy debt load of local governments, which have borrowed vast sums of money through separate financing vehicles to fund local projects, has prompted concern over potential defaults and the burden it would place on the financial sector.

Following is a breakdown of which local governments are issuing which amount of debt. Figures are in billions of yuan.

Copyright Reuters, 2011