Six provinces chosen for pilot bond scheme

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clpstaff &clp articles

Local governments will soon have a new way to raise money

Six provinces and municipalities, including Beijing, Shanghai, Tianjin and Chongqing, are expected to become pilot regions for bond issuance, following the review of an earlier State Council proposal by the Standing Committee of the National People's Congress.

The move comes in response to the central government's Rmb4 trillion stimulus package, which was announced in November 2008. The central government will come up with 29% of the package; the rest will be provided by banks, companies and local authorities. The latter will be asked to contribute Rmb600 billion in 2009, and it appears that some of this will be raised through the issuance of bonds.

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