Chinese local governments will be allowed to use part of the money raised from special-purpose bonds to replenish small banks' capital, as the world’s second largest economy tries to defuse bad-debt risks and strengthen small banks’ ability to serve the real economy.
Local governments can use proceeds from the special-purpose bonds to buy convertible bonds sold by some small and medium-sized banks, said the State Council in a meeting on Wednesday.To continue reading, please subscribe. You will get
- IN-DEPTH & DATA-DRIVEN reporting about key trends in China's economy and financial markets
- THE WIRE - up-to-the-minute updates of market-moving news and views. We want you to be the first to know it when something important happens.
- DETAILS - We bring you details that you won't find elsewhere. General information is everywhere, but information with details and relevant to your investment is rare.
We highly value independence. We are solely funded by subscriptions from intelligent readers like you.
Already have an account? Sign In