Landmark year for local debt sector

Accounting and budget reforms trigger growth in direct borrowing

The fledging regional and local government bond market in China is poised for more significant developments in 2015, with additional steps toward greater transparency and responsibility in borrowing.

The changes expected this year will be in line with the revised budget law that took effect on Jan 1, which will eventually allow some local administrations to issue bonds outside of an existing pilot program. The value of issuance this year will rise by 50% from 2014, according to the 2015 budget proposal .