The central government is reportedly planning to issue regulations for the cleanup of local government financing vehicles.
Shanghai Securities News says the National Development and Reform Commission, the Ministry of Finance, the central bank and the China Banking Regulatory Commission plan to jointly issue the regulations.
Sources say local governments will have to submit reports by the end of this year on how they've strengthened management of their financing vehicles. Financing vehicles that rely on fiscal government funds to repay loans will no longer be allowed to borrow. But reports also say local rail transport projects will be allowed to continue borrowing.