Chinese government debt

Local Chinese state firms to stand on their own feet

In a move to curb local government debt, regional governments will no longer guarantee the offshore bonds of local Chinese state firms.
Sichuan Railway Investment Group is one of the local Chinese state firms issuing US dollar bonds.
Sichuan Railway Investment Group is one of the local Chinese state firms issuing US dollar bonds.

Local Chinese state-owned enterprises (SOEs) can no longer assume that their debt will be guaranteed by their local governments, according to a new notice from the National Development and Reform Commission (NDRC), the Chinese government body that oversees bonds. The notice also slapped restrictions on offshore bond issuance by local SOEs and local government financing vehicles (LGFVs).

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