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Another five Chinese governments join deposit auction trial: sources

Tuesday, February 3, 2015 - 19:27
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China has authorized another five local governments to auction deposits through the central bank, sources told Reuters, following plans announced the previous day to reform the system of central-to-local fiscal transfers.

[BEIJING] China has authorized another five local governments to auction deposits through the central bank, sources told Reuters, following plans announced the previous day to reform the system of central-to-local fiscal transfers.

Shanghai's municipal finance bureau announced on Tuesday that it would auction 40 billion yuan (US$6.40 billion) of 6-month deposits in February, in what traders said would be the first such move by a local government in China.

Two sources with knowledge of the matter told Reuters five other local governments had also been approved to float their deposits "on a trial basis" this year.

The five governments are the Beijing, Guangdong, Shenzhen, Heilongjiang and Hubei authorities, said the sources, who asked not to be identified because they are not authorised to speak to the media.

Officials at the Finance Ministry were not immediately available for comment.

REUTERS