China to issue $7.6b local govt bonds

BEIJING - The Ministry of Finance said Wednesday that it will issue 47.8 billion yuan ($7.59 billion) worth of bonds on behalf of local governments next month, in a bid to ease financing pressures and create more funding channels for local governments.

On July 9, the ministry will auction off 23.9 billion yuan in three-year local government bonds on behalf of seven provinces, municipalities and autonomous regions, according to a statement posted on the ministry's website.

The seven provincial-level governments include Qinghai, Shanxi, Beijing, Fujian, Ningxia, Heilongjiang and Jiangsu.

The ministry will also issue 23.9 billion yuan in five-year bonds on behalf of the seven governments on July 16, the statement said.

Except Shanghai Municipality, Shenzhen, a special economic zone, and the coastal provinces of Zhejiang and Guangdong, other local governments are prohibited from issuing bonds directly.