‘Not a comeback’: LGFVs rally, but for how long?

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By Addison Gong
02 Aug 2018

Chinese local government financing vehicle (LGFV) bonds are making a comeback in both the primary and secondary markets offshore, as the government suggests a shift in priorities from deleveraging to maintaining economic growth. But will the rally last — and for how long? Addison Gong reports.

It looks like there is life yet in Chinese LGFVs. The sector has increasingly been regarded with scepticism by gun-shy investors this year, but the primary market is now showing a more upbeat tone and LGFVs are making the most of it.

On Thursday, Baa3/BBB- rated Wuhan Real Estate ...

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