Ministry plans steps to boost bond deals

The Ministry of Finance is trying to expand the pool of investors in local government bonds, as it seeks to tackle potential liquidity stress amid tightening financial regulation.

The ministry is planning to allow commercial banks to sell local government bonds over the counter to non-financial institutions and retail investors, according to a guideline highlighting the government's key measures in 2018 to manage bond issuance, published by the Ministry of Finance late on Tuesday.

Less than a year ago, investment in local government bonds was opened to domestic individual investors for the first time, and they could purchase the instrument through a trading system under the Shanghai Stock Exchange.