Yiwu bags $400m despite virus fears, offers hope for LGFV issuers

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By Morgan Davis
13 Feb 2020

Investors shrugged off concerns about Chinese local government financing vehicles to invest in Yiwu State-owned Capital Operation Co’s $400m bond sale this week. Despite the outbreak of Covid-19 (the coronavirus), there is still interest in mainland government-linked credits and the premium they offer. Morgan Davis reports.

While mainland issuers have found a receptive bond market after the Chinese New Year holidays, until Tuesday LGFVs had yet to make their return. Investors have raised questions around the sector, particularly in the wake of the spread of the Covid-19, said bankers on the Yiwu trade.

Yiwu, ...

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