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Chinese considers allowing local governments to buy more types of bonds issued by banks for capital replenishment

Chinese policymakers have told the banking regulator to cooperate with local governments to make plans for smaller banks to deepen reform and replenish capital.

Industry insiders say that authorities are considering expanding the type of bonds issued by small banks that local governments are allowed to purchase with special-purpose bonds, in a move to help them replenish capital.

China's State Council has approved and issued guidelines for medium- and small-sized banks to . . .

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