China Asks Bankers to Avoid Underwriting Short-Term LGFV Bonds

AI Summary

China is advising municipal borrowers to avoid underwriting short-term local government financing vehicle (LGFV) bonds to limit fundraising by weaker issuers. This move is part of broader financial regulatory efforts in the domestic bond market.

China is steering municipal borrowers away from issuing short-term bonds in the domestic market, according to people familiar with the matter, in its latest bid to curb fundraising by weaker issuers.