China Local Govt Bond Sales May Not Accelerate in H2: Herald

Local governments in China may not accelerate the sales of bonds in H2 as the central government has introduced several measures to tighten the regulation on special bonds backed by infrastructure, the 21st Century Business Herald reported citing analysts. As an example, in a province in western China, only 40% of over 2,000 infrastructure projects got approved as review processes tightened, the newspaper said. The issuance of new special bonds has been slow with a quota of about CNY2.1 trillion to be issued in H2, the newspaper said. New quota for special bonds may drop significantly from next year, as they are no longer needed for stabilizing growth, the newspaper cited Zhou Yue, chief fixed-income analyst of Zhongtai Securities.