China sells five-year local govt bonds at 4.30pc

SHANGHAI: China's finance ministry auctioned 24 billion yuan ($3.8 billion) of five-year bonds on behalf of seven regional governments at a yield of 4.30 percent, traders said on Monday.

That was up from 4.12 percent at an auction of similar debt earlier this month.

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.

Copyright Reuters, 2011