China to expand local government financing

China will allow a select group of local governments to sell significantly more bonds directly, providing them greater control in managing their own finances, The Wall Street Journal reported, citing anonymous sources. Beijing plans to authorize the direct sale of up to RMB70 billion (US$11.3 billion) in bonds for the selected localities, more than twice the amount from last year of RMB28.9 billion (US$4.7 billion). Sources noted that the Shandong and Jiangsu provinces will be added to the program, which launched in 2011, joining the economically fertile provinces of Guangdong and Zhejiang, as well as the cities of Shenzhen and Shanghai.