Local Gov Bond Sales Exceed CNY8 Trillion For The First Time

The issuance of local government bonds reached CNY8.2 trillion as of October 25, breaking through the CNY8 trillion mark for the first time. Annual issuance will likely exceed CNY8.5 trillion as local authorities issue more special refinancing bonds. The borrowers began to issue special refinancing bonds in October, which have reached CNY840 billion as of Wednesday, to swap out high-interest off-balance-sheet debts and repay arrears. The balance of local government statutory debt is close to CNY40 trillion, with the debt ratio exceeding the warning level. The overall local debt risk is controllable but the repayment pressure in some regions is prominent, said an unnamed source close to the regulatory authority. (Source: 21st Century Business Herald)