trending Market Intelligence /marketintelligence/en/news-insights/trending/IGhzarCn9KacGHVMSV3rgg2 content
Log in to other products

Login to Market Intelligence Platform

 /


Looking for more?

Contact Us

Request a Demo

You're one step closer to unlocking our suite of comprehensive and robust tools.

Fill out the form so we can connect you to the right person.

If your company has a current subscription with S&P Global Market Intelligence, you can register as a new user for access to the platform(s) covered by your license at Market Intelligence platform or S&P Capital IQ.

  • First Name*
  • Last Name*
  • Business Email *
  • Phone *
  • Company Name *
  • City *
  • We generated a verification code for you

  • Enter verification Code here*

* Required

In This List

S&P: Easing of Chinese bond refinancing rules to help local governments

Paypal Well-Positioned To Gain Share In COVID-Related Digital Payments Shift

Street Talk Episode 61 - Investors debate if U.S. banks have enough capital in post COVID world

You Down With PPP? Consider The Risks

Street Talk Episode 60 - You Down With PPP? Consider The Risks


S&P: Easing of Chinese bond refinancing rules to help local governments

China's heavily indebted local governments are expected to benefit from the reported easing of rules for their issuance of domestic corporate bonds, S&P Global Ratings said.

State-run China Securities Journal reported, as cited by Reuters, that the country's securities exchanges have eased bond refinancing requirements for local government financing vehicles, or LGFVs.

"We believe this is an interim measure to help LGFVs manage refinancing risk, while also supporting infrastructure investment to shore up the economy," Ratings credit analyst Gloria Lu said.

The less-strict rules also signal that China is prioritizing financial stability and fiscal expansion over local-government funding reforms, Ratings added.

"In the longer run, we believe LGFVs will continue to transform their business model, and China will rely on more transparent means to finance local government spending," Lu said.

According to Ratings, statistics show that approximately 500 billion Chinese yuan in domestic corporate bonds by LGFVs will be due in 2019.

As of March 13, US$1 was equivalent to 6.71 Chinese yuan.