Beijing curbs bond issues on default fears

The mainland's bond regulator has stopped approving debt sales by governments below provincial level, underscoring concerns of defaults arising from a flood of bond issues by local government financing vehicles this year.

The National Association of Financial Market Institutional Investors, appointed by the central bank to supervise the interbank bond market, had suspended applications to issue medium-term bills by local governments other than provinces, municipalities, provincial capitals and other specially designated cities, industry sources said.

via Business feed http://www.scmp.com/business/money/markets-investing/article/1076516/beijing-curbs-bond-issues-default-fears