Chinese LGFV bonds

Investors must tread carefully with LGFV bonds

Investors are rushing back to Chinese LGFV offshore bonds, but credit risk means that picking the wrong ones could be costly.
In China, local government financing vehicles (LGFVs) finance the construction of infrastructure projects.
In China, local government financing vehicles (LGFVs) finance the construction of infrastructure projects.

Amid the current wave of enthusiasm for offshore bonds from Chinese local government financing vehicles (LGFVs), investors should exercise caution when choosing where to invest. The sector is a minefield of credit risk.

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