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Stock impact report

China's LGFVs Raise Record Dim Sum Debt as Domestic Curbs Bite [Yahoo! Finance]

Invesco Ltd (IVZ) 
Last invesco ltd earnings: 4/23 06:55 am Check Earnings Report
Company Research Source: Yahoo! Finance
Most Read from Bloomberg NYPD Car Chases Are Becoming More Frequent — and More Dangerous LGFVs have raised 163.6 billion yuan ($22.5 billion) via so-called dim sum notes this year, the most since Bloomberg began compiling relevant data in 1993. The average coupon has risen to a four-year high of 5.82%, more than double that of bonds they sell in mainland China. The ballooning overseas debt sales, frequently for refinancing purposes, show how regulatory loopholes are undermining Beijing's attempts to rein in risks for LGFVs. While it has prioritized borrowings curbs and offered debt swaps onshore, its restrictions overseas predominantly target investment exposure. “The main reason is the relatively less restrictive regulations for LGFV offshore bond issuance,” said Freddy Wong, head of Asia Pacific fixed income at Invesco Ltd. “Domestic regulation remains tight for LGFV issuers on taking on incremental debt.” LGFVs have sold 5.4 trillion yuan worth of local-currency bonds on Show less Read more
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