Rules on bond issuance

China has encouraged operators of social securities funds, housing funds and enterprise annuities as well as insurance firms to invest in bonds issued by local governments, the Ministry of Finance (MOF) said on Monday.

According to the interim measures on local governments' bond issuance released by the MOF, local governments have been allowed to issue bonds with a maturity period ranging from one year to 10 years, the ministry said.

The bonds will be issued and paid back by local governments in a market-oriented way, according to the MOF.

The new measures have been in effect since Thursday.