Bloomberg Law
Aug. 22, 2023, 3:42 AM

Chinese LGFVs Get Record Investor Demand for New Short-Term Debt

Wei Zhou
Shuiyu Jing

Demand has surged for shorter-term yuan bonds from local government financing vehicles, led by lower-rated borrowers, in the wake of China’s efforts to stem debt risks in the sector.

Orders for new LGFV notes maturing in less than a year have exceeded issuance by 4.6 times so far this month, which would be a record, according to a report from Huaan Securities Co. The subscription ratio is 3.9 for notes maturing in 1 to 2 years, the highest in nearly a year.

Bonds rated AA have had an order rate of 7.9 times this month while the figure for AAA ...

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