First local government bonds issued

China has issued its first, tradable local government bonds. The Ministry of Finance issued Rmb3 billion three-year bonds on behalf of the Xinjiang Uyghur Autonomous Region, with underwriting occurring between March 30 and April 1. From April 3, the bonds could be traded on the interbank market and securities exchanges.

“The debt paying ability of Xinjiang is strong enough to repay local government bonds on schedule,” said Kong Wei, a Beijing-based partner of Grandall Legal Group.