SHANGHAI May 28 China's southern province of
Guangdong may become the first local government to issue
municipal bonds under a pilot scheme, the semi-official China
Business News said on Wednesday.
The province opened a tender for rating companies for the
issue on Monday and is set to organise an underwriting group on
June 9 and 10, the newspaper said, quoting unnamed sources.
"Except Guangdong, no other provinces and cities have a
timetable for their issues yet," China Business News said.
Nine Chinese rating firms competed in the tender and
Shanghai Brilliance Credit Rating and Investors Services Co won
it, the newspaper said.
The Ministry of Finance said last week that 10 local
governments had been given quotas to issue a combined 109.2
billion yuan ($17.52 billion) worth of municipal bonds this
Earlier, the ministry announced China's watershed move of
letting the 10 local governments to issue and redeem their own
bonds in an experiment to straighten out messy state budgets,
and start the clean-up of its $3 trillion public debt problem.
It said the governments in Shanghai, Zhejiang, Guangdong,
Shenzhen, Jiangsu, Shandong, Beijing, Qingdao, Ningxia and
Jiangxi will be part of a pilot scheme that effectively creates
China's first-ever municipal bond market.
Among the 10, Guangdong was given the second biggest quota
of 14.8 billion yuan only after Jiangsu's 17.4 billion yuan.
($1 = 6.2486 Chinese Yuan)
(Reporting by Lu Jianxin and Kazunori Takada; Editing by Eric