Selected local governments are..........>

CHINA PRESS: Selected local governments are required to raise coupons of local

government bonds to boost issuance and attract investment, Shanghai Securities

Journal reported Thursday.

  - Regulators asked local governments to set local government bond coupons 40

BP higher than coupons of China Government Bond of the same term, according to

the newspaper;

  - The move came after the Ministry of Finance asked, in mid-August, to speed

up issuance of local governments' special bonds for infrastructure investment;

  - Guangdong, Jiangsu and Zhejiang provinces have increased coupons of local

government bonds by 40 BP thus far, the report said;

  - Some financial institutions are buying more local government bonds, which

are having favourable yields, it said.