Supply of local government bonds will...>

CHINA PRESS: Supply of local government bonds will surge in the coming months,

China Securities Journal reported Thursday. 

  - As the first four months saw a slower pace of local government bond issuance

compared with the same period in previous two years, local governments are

expected to speed this up later this year; 

  - The debt-to-bond swap programme, started in 2015 with the aim of swapping

all existing government debt with government bonds by August this year, was the

main reason for this lower pace, as less new bonds were issued. 

***Comments: Ministry of Finance on Tuesday issued a guidance on local

government bond issuance, requiring that most governments' quarterly bond

issuance should be no more than 30% of the whole year. More issuances will come,

and the supervision on bond activities at the local level will increase.