Our analysis of China’s local government bonds published on June 16 has generated a number of questions from clients and the policy community. In this follow-up note, we address the most frequent inquiries we have received, and update our dataset of local government bond issuance through early July. Based on our expectations for how placement bonds should be reflected in TSF totals, aggregate loan growth in June should be in line with or slightly stronger than May levels, since placement bond issuance fell marginally last month.
