Moody’s' Chung dissects China LGFVs at FinanceAsia summit

Know your local government financing vehicle LGFV before buying into their bonds, Ivan Chung of Moody’s cautioned on the second day of FinanceAsia’s 2^nd China Fixed Income Summit.

LGFV bonds are a new asset class and investors need to pay attention to them because there are more and more issuances from these government entities coming to market, on top of the more than 2,000 of them that are already available in the onshore market. What’s more, they’re very diverse securities, with features depending on their geography, scope of work or quality, Chung said.

“It is not simply a government risk or a corporate risk. It’s...