ANBOUND: China's Local Debt Replacement Won’t Be Easy
ANBOUND
According to reports of Bloomberg, China's Ministry of Finance is considering setting the amount of second local debt replacement project as 500 billion to 1 trillion RMB. ANBOUND think tank scholars point out that if there’s really a second local debt replacement this year, it is hard to digest such large amount of extremely low yield bonds even by administrative measures. The rebound might be relatively strong. The successful issuance will test the wisdom of regulators.