Private Investors Seen Curbing Local Debt Blowout: China Credit
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Premier Li Keqiang’s invitation for private investors to help finance railways, ports and waterworks will help curb a blowout in regional debt, supporting a rally in local-government financing vehicle bonds.
China will open up bidding for 80 projects in industries now dominated by the state, according to an April 23 government statement citing a meeting chaired by Li. The yield on 2017 notes of Chifeng City Infrastructure Investment & Development Co., a road-building LGFV in Inner Mongolia, fell 124 basis points this year to 6.40 percent, exchange data show.