Ratings agency calls for more bond offerings by local govts

A domestic credit ratings agency has urged the central authorities to allow local governments to sell at least 3 trillion yuan ($488.4 billion) in bonds this year to replace existing debt incurred by financing vehicles.

That would represent a massive increase, however, since the central government last year only provided a quota of 400 billion yuan for local government bond sales.

Han Wei, vice-president of China Chengxin International Credit Rating Co Ltd, told China Daily on Thursday the figure is based on the amount of outstanding bonds, commercial paper, medium-term notes and other debt securities issued by local government financing vehicles.