Lower levels of local government........>

CHINA PRESS: Lower levels of local government loans left to be replaced by bonds

have resulted in a sharp drop in government bond issuance, Shanghai Securities

News reported on Wednesday. The issuances of local government bonds in the first

quarter amounted to CNY219.5 billion, around half of the issuance amount of the

same period last year, the report said. There will be CNY1.51 trillion of local

government debt that will need to be replaced by bonds this year as of the end

of March, the report said. As new local government bonds will begin to issue in

the second quarter, the issuance amount of local government bond will begin to

rise, the report said.