Reported 15 days ago
China has prohibited domestic investors from acquiring offshore yuan bonds issued by local government financing vehicles (LGFVs) through its Bond Connect trading link with Hong Kong, aiming to mitigate risks stemming from the heavily indebted sector. This action follows a recent influx of debts amid a property crisis and comes after the People's Bank of China instructed brokerages and banks to halt LGFV bond purchases. The decision reflects ongoing efforts to address financial stability concerns associated with LGFVs, which are accountable for a significant portion of corporate bond issuance this year.
Source: YAHOO