PBOC Calls For More Support for Private Builder Bond Sales

  • Deputy Governor Pan told China Bond Insurance to lift support
  • Program to guarantee some local note sales emerged in August

Pan Gongsheng

Photographer: Qilai Shen/Bloomberg
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China signaled a possible expansion of a key program to boost liquidity for real estate firms beset by an industry debt crisis, as distress mounts following record defaults.

People’s Bank of China Deputy Governor Pan Gongsheng asked state-owned China Bond Insurance Co. on Thursday to step up support for bond sales by private-sector developers. The debt insurer is the linchpin of a closely watched program that emerged in August to help a select group of builders issue local bonds by guaranteeing those offerings.