China’s Latest Easing Sparks a Shift Through Its Local Debt
- Beijing, Hubei saw premium over sovereign debt fall this week
- Provincial bond sales will boost second-half growth: Citigroup
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China’s newly introduced measures to spruce up economic growth are starting to trickle down to the regional level, the latest bond auctions have shown.
The central bank’s decision this month to lower the reserve requirement ratio for banks, along with a reduction in debt supply, enabled the local governments of Beijing and Hubei to pay a smaller spread over central government bonds at debt sales this week.