Moody's sees 'unique path' for local govt bonds

Nation's policies have raised confidence of international investors, says country head

China's regional and local government bond market will be developed with its own characteristics, following neither the United States or Northeastern Asian models, according to Jenny Shi, managing director and country manager for China of rating agency Moody's Investors Service Inc.

Under the US model, the federal government allows local governments to go under if they default, while the North Asian model follows the principle that a central government would always come to the financial rescue of any troubled local government, Shi told China Daily.