Guangzhou-based 21st Century Business Herald reported that regional authorities in China are seeking funding for food, energy and supply chain security projects to be funded by special treasury bonds.
Although emerging economies as a whole have seen net inflows for their capital markets, overseas investors are still selling their Chinese assets in what analysts have termed a “bifurcation” prompted by heightened perception of risks.
Declining relations with West, de-risking, reshoring, tech embargoes set to weigh on inflows to China’s stocks and bonds in 2024, Institute of International Finance says.
Local governments plan to use the proceeds of the latest bond sales to purchase equity or convertible bonds from smaller banks, most of them state-owned, effectively recapitalising them, according to the deal prospectuses.