Aug
22
China Spending Push Buoys Debt Sales, Calls for More Easing
By-
Local bond supply forecast to reach all-time high in China
- Analysts expect liquidity injection to ease supply pressure
China’s return to large infrastructure spending is triggering a flood of new local government bonds, something analysts say will force the central bank’s hand to inject more liquidity to meet the higher debt supply.
The government in China is encouraging local authorities to ramp up funding to boost building projects, a change from the push in the recent years to rein in debt-fueled growth. The increase is already showing up in the data and analysts reckon the supply of local debt in August and September will mark a fresh high for issuance…
