China to Tighten Approvals of Local Governments’ Bonds
This article is for subscribers only.
China will tighten rules on bond sales by polluters, local government financing vehicles with higher debt levels and companies in industries with overcapacity as the government seeks to redirect the economy.
The National Development and Reform Commission, which approves bond sales by entities that local governments set up to finance projects, ordered greater scrutiny for bond sale applications from LGFVs with asset-liability ratios above 65 percent and credit ratings below AA+, according to a statement on the website of the nation’s top economic planner yesterday.