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China allows retail investors to buy local government bonds at banks

The People's Bank of China (PBOC) said on Wednesday that retail investors are allowed to purchase local government bonds at commercial banks, extending the list of bonds available for them over banks' counters.

Previously individual investors can buy treasury bonds, bonds issued by policy banks and by the China Development Bank at banks over banks' counters. China made local government bonds accessible to retail investors in 2016 but they had to make purchases in the Shanghai Stock Exchange.

Some believe the move will help ease pressure on banks, the major buyers of LGBs, and therefore help increase room for more bank lending.

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