The redemptions have jumped since October, when Beijing allowed local governments to issue special refinancing bonds, estimated to be worth over 1 trillion yuan ($139.85 billion), which could replace their higher-yielding #LGFV debt.
However, investors are opposing the redemptions for fear of losing out on their gains from the higher-yielding #LGFVBonds.
Analysts said the investors who did approve these redemptions were primarily state-owned banks or entities. #China
#SHANGHAI (Reuters) - Chinese regulators have told heavily indebted local government financing vehicles (#LGFVs) to stop issuing offshore bonds with a 364-day duration, closing a regulatory loophole that had allowed them to increase borrowing further last year, four sources familiar with the matter told Reuters. #LGFV
Exclusive-#China tells LGFVs to stop issuing offshore 364-day bonds -sources
https://www.msn.com/en-us/money/news/exclusive-china-tells-lgfvs-to-stop-issuing-offshore-364-day-bonds-sources/ar-AA1mCn68?ocid=emmx-mmx-feeds&PC=EMMX01
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