Local government-controlled companies rated AAA will be allowed to issue super short-term commercial paper (SCP) on the interbank market, 21st Century Business Herald reported Wednesday, citing a source close to the National Association of Financial Market Institutional Investors. The move is aimed at broadening the government’s financing channels. SCPs are short-term corporate bills with maturities of 270 days or less. The new policy gives local government-backed financial entities with a sound credit record more fundraising options. China launched SCPs in 2010, with nine large central government-controlled state-owned enterprises and the railway ministry initially allowed to issue such debt.
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