Bond deluge may keep market on tenterhooks

Slew of offerings likely in next six months as economic planner eases issuance norms

A deluge of local government-related bond offerings are likely in the second half of the year and could spook the market with possible price slumps due to oversupply.

According to analysts, the government's renewed focus on "stabilizing growth" has proved detrimental to the earlier policy of regulating bond issues by the financing arms of local governments. The National Development and Reform Commission, the nation's top economic planner and regulator of State-owned enterprises' bond issuance, had on June 24 permitted local government financing vehicles to sell more bonds and use the proceeds to repay maturing debt.