Municipal debt market takes big step forward

Finance Ministry allows 10 local governments to directly issue bonds to help fund their projects

China will for the first time allow 10 local governments to sell bonds directly to fund development projects, a step that analysts said is a leap forward but still far from a Western-style municipal bond.

The Ministry of Finance on Wednesday posted a statement on its website that identified the 10 governments. They are the cities of Beijing, Shanghai, Shenzhen and Qingdao; the wealthy eastern provinces of Zhejiang, Jiangsu, Guangdong and Shandong; and the inland regions of Jiangxi and Ningxia.