The Bank of China is reported to require banks to tighten investment in bonds in the free trade zone to strengthen the risk of controlling such bonds.This will affect some China City Investment Corporation, which will be borrowed from the funding of the Taoist Free Trade Zone.
According to Bloomberg News on Thursday (July 6), the People's Bank of China conducted window guidance on commercial banks in May, asking banks to stop buying free trade zones issued by the issuer issued by the Shanghai Free Trade Zone without actual business.Bonds are limited to the disorderly issuance of bond issuance in the free trade zone.
Bloomberg data shows that the bond market in the China Free Trade Zone has been significantly heating from the fourth quarter of last year.It is the record high in the same period of the year, and the local government financing platform is the main issue of the bonds of the free trade zone.
The data also shows that there will be no bond pricing for a free trade zone after June 16.The limited investment of such bonds by banks means that urban investment companies will be forced to find another funding channel.
However, Urban Investment has also received support from other channels.China's large state -owned banks are reported to provide a 25 -year loan to the Urban Investment Corporation to alleviate the tightening of credit.
The People's Bank of China has not commented on the matter.
Bloomberg reports that although this move is not specifically targeted at urban investment companies, it will objectively curb the low -rated local government financing platforms through bonds in the free trade zone.
