China City Financiers Squeezed Onshore Tap Overseas Funds

Financing companies for China’s cities are venturing overseas as the government clamps down on fundraising onshore amid mounting concern about record debt.

Qingdao City Construction Investment Group Co., a local government financing vehicle on the country’s east coast, is meeting with international bond investors this week, according to a person familiar with the matter. Zhuhai Da Heng Qin Co., a builder of bridges and roads in the city of Zhuhai near Hong Kong, issued 1.5 billion yuan ($239.5 million) of offshore yuan bonds in December. Beijing Infrastructure Investment Co. sold $1 billion of notes in the U.S. currency in November after becoming the first LGFV to issue Dim Sum securities in June.