Small brokers dip a toe offshore

摘要

Mid-tier Chinese securities firms are making inroads into the offshore US dollar bond underwriting business as foreign banks shy away from servicing a growing number of highly leveraged local government financing vehicles. At times, foreign banks, and even China's big four lenders, have hesitated to underwrite the US dollar bonds of indebted LGFVs from smaller Chinese cities and counties, creating opportunities to break into the offshore debt markets for firms such as Zhongtai International and Dongxing Securities.