Shanghai becomes the first local Chinese government to directly issue bonds in about 20 years,...

|By:, SA News Editor

Shanghai becomes the first local Chinese government to directly issue bonds in about 20 years, drawing strong demand at a sale of ¥7.1B ($1.1B) of 3 and 5 year paper. A shady system of off-balance sheet schemes dominates municipal finance in China, a practice Beijing hopes to curtail by allowing bond sales.