Prohibiting local govts bond issues is damaging to China - opinion

28 Jun 2012

At a time when China’s local governments are starved of long-term funding options, banning the ability to directly issue their own debt is highly detrimental.

Despite all the positive momentum that China has created in the development of its onshore bond market in 2012, regulators took a damaging step backwards this week in barring local municipalities from issuing their own debt.

Their decision will undoubtedly impair the country if it is not reversed.

China’s ...

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