The reform of China’s local government finances is creating an opportunity out of a crisis. After years of debt-fuelled expansion, the country’s provinces and municipalities are now turning to the capital markets to consolidate their borrowings and finance future spending, presenting investors with an opportunity to diversify and underwriters with a growing revenue stream.
IFR Asia China Municipal Funding Roundtable 2015: Roundtable participants
IFR ASIA: Let me come to you first, Fernando. Just set the scene for us here. What’s happening in the Chinese municipal sector, and why would it make sense for local government enterprises to consider the capital markets?