国产热热热精品,亚洲视频久久】日韩,三级婷婷在线久久,99人妻精品视频,精品九热人人肉肉在线,AV东京热一区二区,91po在线视频观看,久久激情宗合,青青草黄色手机视频

Business / Markets

Chinese local govt bond issuance gains momentum

(Xinhua) Updated: 2014-08-22 10:00

Challenges to credibility

As a burgeoning business, the local government bond issuance still faces many challenges.

The introduction of credit ratings is a distinctive feature of the bond issuance this time, but the eight regions that issued bonds in the past three months all got AAA ratings, the highest grade assigned to a debt product, regardless of their economic development level.

The rating is higher than the AA and AA+ normally assigned to the majority of bonds issued by the LGFVs, suggesting the issuer's strong ability to repay.

The underdeveloped northwestern Ningxia Hui autonomous region and the eastern Jiangxi province were rated the same as booming Guangdong province and Shanghai, which stirred doubts among investors as to the credibility of the ratings system, which is meant to allow investors to gauge risk.

"It's hard to judge the credibility of the rating as basic data, including the balance sheets of local governments, has not been released," said Zheng Chunrong, professor with the Shanghai University of Finance and Economics.

The ratings for the eight regions were offered by three independent ratings agencies: Shanghai Brilliance Credit Rating and Investors Service Co Ltd, China Credit Rating Co Ltd and Dagong Global Credit Rating Co Ltd.

Meanwhile, repaying funds raised through municipal bonds will put local government budgets to the test. Without imposing proper fiscal discipline, it will be a challenge to put the issuer's fiscal strength in perspective, according to Lu Zhengwei, chief economist with Industrial Bank Co Ltd.

Having proper budgetary constraints will be a determining factor when reviewing a local government's eligibility to issue municipal bonds, he added.

Minister of Finance Lou Jiwei said in early July that the Chinese government will expand the pilot bond issuance program.

At the same time, Lou called for local governments to make public their balance sheets and for a mechanism to be established to ensure local governments are held accountable for their debts.

The eight regions to have issued their own local government bonds so far are Guangdong, Shandong, Jiangsu, Jiangxi, Ningxia, Qingdao, Zhejiang and Beijing. Shenzhen and Shanghai are scheduled to make the move before the end of 2014.

Chinese local govt bond issuance gains momentum
Chinese local govt bond issuance gains momentum
Guangdong helps kick off new era Municipal debt market takes big step forward

Previous Page 1 2 Next Page

Hot Topics

Editor's Picks
...
...
克什克腾旗| 徐汇区| 黑水县| 台江县| 望谟县| 昆明市| 固始县| 慈溪市| 东海县| 黄骅市| 渭南市| 郓城县| 多伦县| 勐海县| 沾化县| 汽车| 布拖县| 余江县| 凤山市| 巫溪县| 佳木斯市| 同德县| 乳山市| 乌什县| 阜南县| 宁陕县| 桦川县| 布拖县| 康平县| 兴安县| 景宁| 罗源县| 江口县| 集安市| 丹棱县| 密云县| 兰考县| 绿春县| 高碑店市| 水城县| 手机|