Off the wire
• 1st LD: AMTRAK passenger train derails near Philadelphia, at least 50 injured  • China's Jan.-April property investment up 6 pct  • Stanford researchers rethink sanitation system for urban slums  • 1st LD: 41 people killed in bus attack in Pakistan's Karachi  • Japan logs biggest current account surplus since 2008, economists divided over true health of economy  • Xinhua China news advisory -- May 13  • Urgent: China April retail sales up 10 pct  • China's Jan.-April fixed asset investment up 12 pct  • FLASH: 41 KILLED IN PAKISTAN'S KARACHI BUS ATTACK -- POLICE  • Growth of China's industrial output accelerates to 5.9 pct  
You are here: 　 Home

China's 1 trln yuan local gov't debt-swap to finish by Sept.

Xinhua, May 13, 2015 Adjust font size:

China plans to complete a local government debt swap program worth 1 trillion yuan (164 billion U.S. dollars) by the end of August, Xinhua learned Wednesday.

To minimize the impact on liquidity an influx of local government bond offerings would have, the main issuance mode will be private placement rather than public offering, according to a document jointly released by the Ministry of Finance, the People's Bank of China (PBOC) and China Banking Regulatory Commission.

The local government bonds can not be directly traded in interbank or exchange markets, but repo trades are allowed. They are also included as a form of collateral for PBOC's liquidity tools such as the standing lending facility (SLF), mid-term lending facility (MLF) and pledged supplementary lending (PSL).

China is struggling to rein in local government debt caused by unbridled borrowing during the investment and construction binge since the global financial crisis in 2009.

The National Audit Office said that local government debt stood at around 10.9 trillion yuan by the end of June 2013. A total of 1.86 trillion yuan is due by the end of this year. Endi