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China’s LGFV Bond Issuances to Rise: Daily

CHINA PRESS

Bonds issuance by Chinese local government financing vehicles may increase by the end of the year despite measures tightening credit, and investment companies of regional governments will lead the promotion of urbanization, the Economic Information Daily reported on Tuesday citing Zhai Jin, an analyst from Moody's. The amount of urban investment bonds reached CNY3.2 trillion by the end of September, up 28% y/y, as companies utilized ample liquidity and low-financing costs during March and April to raise funds to invest in infrastructure projects and refinancing, according to Moody's.

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