China local government financing platform is in the re -financing boom, China Create U

As the government relieves the pressure of repayment pressure, it has boosted investor confidence. It was once regarded as one of the biggest risks of the Chinese bond market, a Chinese government financing platform, and found a chance to breathe in the US dollar bond market.

Bloomberg reported that the size of the US dollar bonds issued by the China Government's financing platform so far this year has set a record. As of Monday (July 22), the scale of issuance climbed to $ 24.1 billion (below, SGR 32.4 billion)EssenceThis is the highest level since Bloomberg started the data since 2013, an increase of 79%compared with the same period last year.

Laura Lee (translated, Laura Li), the general managing director of the S & P Global Rating, predicts that the US dollar bond issuance of the local government financing platform in the second half of this year will continue to be active.She said that the demand and interest burden on shore and offshore re -financing of local governments are still heavy.

The issuance boom also highlights the popularity of the US dollar bonds of local government financing platforms.In the long -term real estate crisis, other high -income options are still scarce.According to an index that tracks the performance of the US dollar bonds of local government financing platforms, the return on offshore US dollar bonds issued by local government financing platforms so far is 4.62%.

China's $ 9 trillion local government financing platform bond market was once regarded as Asia's largest financial risk.As the government seeks to alleviate debt repayment pressure, investors' confidence has picked up in the past few months.

Bloomberg reported that China required state -owned banks to extend support measures to some key debt -based bonds last week to ensure that urban investment debts expired in the middle of 2027 can receive reinstatement, and domestic financing can be used for use.Repair overseas debt.

On the other hand, Reuters has quoted people familiar with the matter in early January this year that Chinese regulators blocked a loophole in regulatory loopholes last year, allowing local government financing platforms that allow debt to further increase borrowings.

A person familiar with the matter also said that the local government's financing platform has been told that the offshore bond with a period of 364 days has been told.