China Bonds

Moody’s' Chung dissects China LGFVs at FinanceAsia summit

Central China Real Estate’s Mai expresses cautious optimism over property sector while New World Development’s Lam elaborates on Greater Bay Area challenges.

Know your local government financing vehicle LGFV before buying into their bonds, Ivan Chung of Moody’s cautioned on the second day of FinanceAsia’s 2nd China Fixed Income Summit.

LGFV bonds are a new asset class and investors need to pay attention to them because there are more and more issuances from these government entities coming to market, on top of the more than 2,000 of them that are already available in the onshore market. What’s more, they’re very diverse securities, with features depending on their geography, scope of work or quality, Chung said.

“It is not simply a government risk or a corporate risk. It’s...

¬ Haymarket Media Limited. All rights reserved.

FinanceAsia has updated its subscription model.

Registered readers now have the opportunity to read 1 article from our award-winning website for free.

To obtain unlimited access to our award-winning exclusive news and analysis, we offer subscription packages, including single user, team subscription (2-5 users), or office-wide licences.

To help you and your colleagues access our proprietary content, please contact us at [email protected], or +(852) 2122 5222