Source: Bloomberg

Compared with the continuous urban investment bond carnival in the past year in the Chinese public offering bond market, many individual investors have experienced a dark moment on the financing channels of non -standard debt, which is also very important for local urban investment platforms.

The 60 -year -old Lulu Fang's life began to turn upside down from August last year. Direct triggering factors were that the five Guizhou political and letter products she bought were overdue. Except for a liquidation, she said that the remaining four products invested a total of 1500The principal of 10,000 yuan (RMB, S $ 2.77 million) is currently unknown.Politics and Xinxin products usually make financing for state -owned enterprises or platforms with local government backgrounds.

"After working for a lifetime, the money for retirement after retirement was stored in." She told Bloomberg News."My current life is completely a mess."

Since China announced its debt in the second half of last year, the recast of urban investment faith has bred an epic rally of open bonds.However, this grand situation is difficult to hide the dilemma of urban investment non -standard markets with a scale of 6 trillion yuan: frequent thunderstorms, tightening new channels, and losses of a large number of investors.

Enterprise Early Warning Data shows that a total of 60 cities in the first nine months of this year have disclosed default or risk prompts, which increased by 20%year -on -year, which is the highest level in the same period since 2019.Because non -standard issuers or trustees usually do not disclose details such as breach of contract, 20 known scale products have a total of 4.55 billion yuan.

This reflects that since the implementation of a package of debt policy, the resource tilt obtained by urban investment in non -standard markets is very limited.China has recently announced that it plans to launch a measure that has supported debt in recent years. However, market participants pointed out that it can be solved by time to change space, but urban investment has always faced limited channels for creating sustainable income and transformation.The difficult situation should eventually be alert to the possibility of continuous release of non -standard risks to the possibility of more financial markets.

"Even if the latest round of debt policy is landed, the attributes of bonds after non -inferiority will not change. The impact on the non -standard market depends on the actual scale of policy support."Founder Wang Chen said in an interview.

Wang Chen predicts that under the premise of effective control of disorderly financing, in the long run, non -standard risk events will be a downward trend, "but it will not work immediately in the short term, it will take time."

Urban investment non -standard markets mainly include trusts and financing leasing, which have high financing costs, and some products have mismatches.These subjects that rely on high -cost channels to financing are mostly from areas with heavy debt burden, and their credit qualifications are weak.The PIMCO research report shows that the scale of urban investment in the city is about 60 trillion yuan, of which 10%are non -standard financing, and the rest are bank loans and public bonds.

According to the documents provided by Fang, she saw by Bloomberg News, the trust products she purchased issued a loan for a urban investment company in Guizhou, and it was overdue for about one year, with an expected return of 7%-8%.According to corporate warning data, a prefecture -level municipal government in Guizhou is the actual controller of the urban investment company.

The same political letter, some products in Kunming, Yunnan were not spared.According to the exchange announcement, the trust products such as "Hengxin Guoxing No. 636-Kunming Bid Investment and Getting Getting Fund Trust Plan", which are entrusted by the Ministry of Field Trust, have appeared overdue payment.Interface news reports show that these products are guaranteed by local state -owned enterprises such as Kunming Transportation Investment Co., Ltd..Bloomberg Summary Information showed that Union Credit gave AAA rating to Kunming Transportation Investment Co., Ltd..

The 12 high -risk areas mentioned in the "No. 35" of Yunnan and Guizhou in Yunnan and Guizhou.It was still difficult to get rid of the bonds last year.The report released by the S & P Global Rating shows that one year after the launch of the support policy for urban investment, the cash flow of the city's urban investment in the eight high -debt samples is still tight.China's deleveraging reform may be postponed.

Laura Li, managing director of the S & P Global Rating, pointed out in an interview that the demand for urban investment through non -standard financing must be there, especially for these underlying urban investment.In terms of priority of debt policy, it has to be rowed back, so it is still a relatively high level of breach of contract.

The deeper reason behind this is that the land fiscal revenue has fallen sharply, which seriously weakens the financial resources of local governments. China is advancing a greater effort to turn off the debt plan.Local government bonds with a RMB 100 of RMB 100 in order to further replace high cost hidden debt.

Although China's financial minister has recently promised "policy timely rain" and supports local resolving hidden debt, it is unknown when the policy is landing, whether the scope of debt has expanded, and whether the non -standard in the future can benefit.For personal investors like fang, the current situation has not improved.But Fang said that if she could not be resolved as soon as possible, her house in Shenzhen would face the risk of disconnecting.

Many investors' debt search roads are very long.Jason Lai, who works for a state -owned enterprise in Beijing, has invested 3 million yuan in asset management products in Anshun, Guizhou. The product starts the exhibition period in 2019.According to the Chinese referee's online judgment on the Internet, the relevant asset management products are guaranteed by the local city investment in Anshun State -owned Assets Management Company.

He went to Anshun four times to communicate, but "since the product of 2019 is overdue, the principal that has been recovered is less than 10%," Lai admits, "I will never touch such products again in the future." Minmetals Trust has not immediately responded to Bloomberg News to seek comments. Bloomberg News called Kunming Transportation Investment Co., Ltd. and Anshun State -owned Assets Management Corporation, and none of them were answered.