China encourages foreign banks to underwrite local govt bonds


  • China
  • Wednesday, 08 Jan 2020

Billboards of foreign and domestic financial institutions are seen on a street in Shanghai. [Photo by Yan Daming/For China Daily]

BEIJING, China Daily, Jan 8 -- 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.

Foreign-invested banks include solely foreign-funded banks, Sino-foreign joint venture banks and Chinese branches of foreign banks.

Foreign-invested banks have already participated in underwriting bonds issued by the governments of Ningbo, Chongqing, Tianjin and Qingdao cities, as well as the government of Guangdong province, the ministry said.

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