The Chinese Ministry of Finance on Wednesday issued guidelines allowing local governments to issue special bonds. The guideline makes it clear that governments at the provincial level will be responsible for regulating the issuance of special bonds issued by municipal governments under their jurisdiction. The central government encourages local governments to launch pilot programs issuing special bonds of different types, with priority given to land revenue bonds and toll road bonds. Enterprises and banks have been active in the past several years issuing credit to local governments to invest in infrastructure projects. Guarantees from local governments, often in the form of letters or other documents, helped ensure repayments.

Source: The China Post August 03, 2017 05:26 UTC