New incentives for local debt

Commercial banks must buy bonds, but securities will be more liquid, say reports

The central government is using a "carrot and stick" strategy to ensure that more than 1.7 trillion yuan ($274 billion) of municipal bond sales this year will go off without a hitch.

The strategy, which was outlined in a document dated last Friday, was revealed in media reports on Wednesday, and it involves coordination among the top monetary and fiscal authorities.