China Unleashes Bonds to Tackle Local Debt

(Beijing) – China has set in motion a program that lets local governments cut debt costs by swapping up to 1 trillion yuan worth of high-interest loans for low-interest bonds this year.

A May 8 notice issued by the Ministry of Finance, People's Bank of China (PBOC) and China Banking Regulatory Commission gave the program a green light while spelling out requirements for buyers and sellers.