China to use local govt bonds to recapitalise some smaller banks – ZAWYA

China to use local govt bonds to recapitalise some smaller banks – ZAWYA

China to use local govt bonds to recapitalise some smaller banks | ZAWYA MENA Edition HomeBusinessArticleChina to use local govt bonds to recapitalise some smaller banks Local governments to buy convertible bonds issued by small banks    A worker in protective suit sprays disinfectant at a testing site, during a government-organised visit, following a new outbreak of the coronavirus disease (COVID-19) in Beijing, China June 24, 2020. BEIJING- China will allow local governments to use part of the money they raise from special bonds this year to recapitalise some small banks, the cabinet said on Wednesday, seeking to shore up banks and support struggling small firms amid the coronavirus crisis.China will allow local governments to use proceeds from the special bonds to buy convertible bonds sold by some small and medium-sized banks, the cabinet said in a statement after a regular meeting."We have decided to focus on enhancing the ability of financial services for small and medium-sized enterprises, and allow local government special bonds to reasonably support small and medium-sized banks to replenish capital," the cabinet said.China will allow local governments to use proceeds from the special bonds to buy convertible bonds sold by some small and medium-sized banks, the