China's real estate slump hits municipal bond market

City of Shenzhen postpones early redemption of infrastructure bonds

20240310N Shenzhen

Workers walk past a construction site in Shenzhen, China. © Reuters

NORIYUKI DOI, Nikkei staff writer

BEIJING -- Signs are emerging that China's real estate recession is starting to be felt in the country's municipal bond market, especially for special-purpose infrastructure bonds.

The total outstanding issue amount for such bonds has reached 25.3 trillion yuan (around $3.6 trillion), putting them almost on par with government bonds in terms of size.

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