Press "Enter" to skip to content

China quietly cut borrowing cost requirement for local government to boost investment

Chinese authority have quietly cut the premium that local governments are required to pay to sell bonds, in a move to reduce their borrowing costs as the world's second largest economy is keen to boost infrastructure investment and local government spending to shore up growth.

Bonds issued on Tuesday by the Jiangxi and Sichuan provincial governments were issued at a coupon rate of 25 basis points higher than the average yields on the equivalent treasury bonds in the previous five days, compared to previous minimum 40 basis points premium, according to traders.

Last August, the Ministry of Finance required . . .


To continue reading, please subscribe.

We highly value independence. Yuan Talks is solely funded by subscriptions from readers like you. 

What you'll get:

  • High-quality & in-depth reporting on the most important topics about China's economy and financial markets
  • Daily Brief newsletter to give you a full picture of what's happening in China every weekday
  • Interviews with China experts
  • Conference calls and events 

We are not content with general information that you can get everywhere. We go deeper to get details, data and perspectives you won't read elsewhere! 



Already have an account? Sign In