China’s Bond Market Faces Demand Test as Refinancing Surge Looms
- Weekly local government bond issuance highest since Sept.
- PBOC may have to inject liquidity in coming months: Zhongtai
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A test of demand for Chinese local government debt will come this week as authorities are set to sell the most bonds in more than five months, mainly for refinancing.
Nearly 193 billion yuan ($30 billion) of local Chinese bonds are scheduled to be issued, the highest amount since Sept. 25, according to data compiled by Bloomberg. Almost all will used for refinancing existing debt, except a 11.4 billion yuan bond sold by the province of Sichuan to provide capital for small local banks.