China Considers Bond Quota Increase to Aid Local Governments Amid Debt and Economic Concerns
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China to discuss advancing 2024 bond quota to provide liquidity for struggling local authorities amid efforts to tackle debt and support regional banks.
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Bonds have become major fundraising source for provinces and municipalities as land sale and tax revenues fall due to property crisis and post-COVID recovery.
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Lawmakers to meet Friday to discuss bill approving front-loading 2024 allocation to avoid "cliff" with over 90% of 2022 quota used.
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Ratings agency warns of rising risks at small and medium regional banks as local authorities face challenges containing risks.
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Central government has allowed bonds to refinance liabilities and new commission focuses on preventing systemic risks.