China encourages foreign banks to underwrite local govt bonds

Billboards of foreign and domestic financial institutions are seen on a street in Shanghai. - China Daily

BEIJING: Local governments will be guided to revise rules to allow foreign-invested banks to underwrite bonds issued by them as part of the country's financial market opening-up, the Ministry of Finance said.

Allowing foreign-invested banks to participate in underwriting local government bonds would help expand the issuance channel, investor base and the market's opening-up, the ministry said Monday in a statement on its website.