More foreign-invested banks to get bond underwriting nod

Move expected to expand issuance channels for local governments, boost opening-up

More foreign-invested banks will be allowed to underwrite bonds issued by the local governments in China, as part of the country's financial sector's further opening-up efforts, experts said.

Allowing foreign-invested banks to participate in the underwriting will not only bring in more overseas investors, but also boost the faster expansion of the country's 20 trillion yuan ($2.9 trillion) local government bond market this year.

Local governments are expected to issue 135 bonds worth more than 400 billion yuan this week, the highest issuance in history, according to data released by the China Central Depository and Clearing Co Ltd.