China LGFV Dollar Bond Sales Persist

The video discusses the recent surge in dollar issuances by Local Government Financing Vehicles (LGFVs) in China, highlighting specific deals from Shandong, Hunan, and Guangxi provinces. Despite concerns from ratings agencies about increasing off-balance sheet debt, investors remain confident, as no bond defaults have occurred in the sector. The video also covers recent NEO default cases, which were resolved with government intervention, raising questions about moral hazard. It concludes with a discussion on foreign investor trust in Beijing's support and the differing actions of local governments to protect their GDP and FX reserves.

What recent trends have been observed in deal announcements related to LGFVs?

What is the significance of the bond defaults mentioned in the text?

Discuss the implications of the government's orchestration of bailouts for investors.

What factors contribute to the cautiousness of foreign investors in the context of LGFVs?

How do local governments' actions regarding LGFVs differ from the central government's statements?