China closes local government offshore financing loophole 


Business & FinanceGovernment

Reuters exclusively reported that Chinese regulators have closed a regulatory loophole that last year allowed heavily indebted local government financing vehicles (LGFVs) to further increase their borrowing. 

Market Impact

The NDRC published regulations on medium and long-term foreign debt in January 2023, but said offshore debt financing with maturities of less than one year did not need approval. That led to 27 offshore LGFV bonds with a duration of 364 days being issued in 2023, most of them after October and with yields above 6%, data from TianFeng Securities showed.

Article Tags

Topics of Interest: Business & FinanceGovernment

Type: Reuters Best

Sectors: Business & FinanceFinancial ServicesGovernment & Public ServicesTransport & Logistics

Regions: Asia

Countries: China

Win Types: Exclusivity

Story Types: Exclusive / Scoop

Media Types: Text

Customer Impact: Significant National Story

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