Big state-owned lender Bank of Communications is participating in a second round of trials for the over-the-counter sale of local government bonds.
Information from China’s Ministry of Finance indicates that during the period from 14 June to 24 June Bank of Communications will undertake over-the-counter bond issuance work for the municipal or provincial authorities of Hainan, Shanghai, Guangdong and Guangxi.
All of the local government bonds issued during this period will be special bonds, with projects including toll roads and land bank projects, with funds to be used for development of local economies.
Earlier this year in March Bank of Communications took part in the first round of trials for over-the-counter local government bond issuance, for the administrative authorities of Zhejiang province, Sichuan province and Beijing municipality.
According to officials the active participation of Bank of Communications in the second round of trials will further expand channels for investment by retail investors and small and medium-sized institutions, helping to advance Beijing’s financial inclusion policies.