China tightens rules for local government debt sales

The financing companies, set up by local governments to fund projects, would undergo extra scrutiny if their debt-asset ratio exceeded 65 per cent and the debt to be issued was rated below AA-plus, sources said, citing a notice from the National Development and Reform Commission earlier this month.

via Business feed http://www.scmp.com/business/banking-finance/article/1232552/china-tightens-rules-local-government-debt-sales-limit-risk