Record Wave of Local Debt in China Leaves Foreigners Wary

  • Local government bonds have negligible foreign ownership
  • Poor liquidity, lack of premium over policy-bank bonds cited
Photographer: Qilai Shen/Bloomberg
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China’s success in luring foreigners into its domestic debt market, the world’s second largest, faces a new test in coming months as officials try to drum up interest in a record wave of bonds from local authorities.