SHANGHAI: China's Beijing city government auctioned a total of 10.5 billion yuan ($1.71 billion) of five-, seven- and 10-year bonds at yields of 4.00, 4.18 and 4.24 percent, respectively, traders said on Thursday.
It is the eighth time this year that a Chinese local government has issued bonds directly, without Finance Ministry acting as a proxy.
China announced in May that it would allow local governments to issue US-style municipal bonds for the first time in an experiment to straighten out its messy state budget, and start the clean-up of its massive local government debt problem.
The Ministry of Finance granted 10 local governments a combined quota of 109.2 billion yuan to issue such bonds this year.
A slowdown in the world's second-largest economy has added greater stress on state-own firms with large debts to repay.
A senior finance ministry official had said earlier this month that the pressure on local governments to repay their $3 trillion debt is the greatest this year when a fifth of loans are due.
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