Beijing is considering a trial program which would allow select local governments to issue bonds, the Wall Street Journal reported, citing a person familiar with the situation. Under the program, the governments of Zhejiang and Guangdong, as well as Shanghai and Shenzhen, would be allowed to sell about 20 billion renminbi (US$3.13 billion) of debt in the fourth quarter of this year. Currently, the Ministry of Finance issues bonds for the local governments: It pays principle and interest to investors, and local governments in turn pay the ministry. The new program would in theory allow local governments to raise capital for new infrastructure projects more easily. “Such a program is credit-positive as it will enhance local administrations’ discipline and transparency in managing their debt, and more importantly, will expand their sources of funding,” said Moody’s Investors Service (part of Moody’s; MCO.NYSE) in a report released earlier this month.