Reuters exclusively reported that Chinese regulators have closed a regulatory loophole that last year allowed heavily indebted local government financing vehicles (LGFVs) to further increase their borrowing.
Business & FinanceGovernment
China closes local government offshore financing loophole
08 January 2024, 7:46 pm 1 minute
Market Impact
The NDRC published regulations on medium and long-term foreign debt in January 2023, but said offshore debt financing with maturities of less than one year did not need approval. That led to 27 offshore LGFV bonds with a duration of 364 days being issued in 2023, most of them after October and with yields above 6%, data from TianFeng Securities showed.
Article Tags
Topics of Interest: Business & FinanceGovernment
Type: Reuters Best
Sectors: Business & FinanceFinancial ServicesGovernment & Public ServicesTransport & Logistics
Regions: Asia
Countries: China
Win Types: Exclusivity
Story Types: Exclusive / Scoop
Media Types: Text
Customer Impact: Significant National Story
