Chinese local government authorities, under pressure from Beijing to counter an economic slowdown, are likely to issue over 740 billion yuan of special bonds by the end of October to fund more infrastructure spending, on top of 2.1 trillion yuan in regular borrowing, FT Confidential Research indicates.
The wave of fresh paper will complicate efforts to refinance existing local government debt. It also muddies long-running central government attempts to rein in borrowing by free-spending local governments.
