China Should Replace Local Debt with Govt Bonds: Journal

China should consider replacing some existing debts with central government bonds, since local governments are under growing pressure given tightened rules on the sale of special local bonds, the China Securities Journal reported citing industry experts. Local governments should, however, maintain reasonable growth and only debts backed by regulation could be replaced by government bonds, the newspaper cited Zhang Ming, a director from the China Academy of Social Science. Implicit local government debts remain difficult to resolve given their roles supporting the local economy, the newspaper wrote citing Wen Laicheng, a director from the Zhongcai-CSCI Pengyuan Research Institute.