China encourages foreign-invested banks to underwrite local gov't bonds

Local governments will be guided to revise rules to allow foreign-invested banks underwriting bonds issued by them as part of the country's financial market opening-up, the Ministry of Finance said.

Allowing foreign-invested banks to participate in underwriting local government bonds would help expand the issuance channel, investor base and the market's opening-up, the ministry said Monday in a statement on its website.

Foreign-invested banks include solely foreign-funded banks, Chinese-foreign joint venture banks and Chinese branches of foreign banks.

Foreign-invested banks have already participated in underwriting bonds issued by the governments of Ningbo, Chongqing, Tianjin and Qingdao cities, as well as the government of Guangdong Province, the ministry said.

Source(s): Xinhua News Agency