China’s LGFVs Raise Record Dim Sum Debt as Domestic Curbs Bite
- State-linked borrowers face onshore financing restrictions
- Offshore yuan bond coupons have risen to four-year high
This article is for subscribers only.
Chinese local government financing vehicles are selling an unprecedented amount of offshore yuan bonds, skirting attempts made by Beijing to reduce their debt sales.
LGFVs have raised 163.6 billion yuan ($22.5 billion) via so-called dim sum notes this year, the most since Bloomberg began compiling relevant data in 1993. The average coupon has risen to a four-year high of 5.82%, more than double that of bonds they sell in mainland China.