The National Development and Reform Commission (NDRC) will allow local governments to refinance their short-term, high-interest debt with long-term, low-interest securities, China Securities Journal reported Wednesday. The move is part of efforts to contain risks from the country’s massive local debt pile. More than half of urban construction investment bonds are paying interest above 8 percent, adding pressure for refinancing, the report said. Meanwhile, the NDRC will ramp up support for aggregate bonds issued by small and medium-sized enterprises and launch a trial scheme that allows issuers to choose between extending the duration of their bonds and repaying them at maturity, the report said.
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