China will study whether it is feasible for local governments to issue bonds, the Shanghai Securities News reported Monday. The Ministry of Finance is currently the only organization which can issue bonds on behalf of local governments.

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The Ministry of Finance, the National Development and Reform Commission, the People's Bank of China and the China Banking Regulatory Commission started to check the amount of local government debts issued via "local financing platforms" in August. They gathered data from all provinces, autonomous regions and municipalities as of Dec 10, the Shanghai Securities News reported.

The Ministry of Finance and relevant departments will try to set up a reporting system for debts raised through "local financing platforms" and improve the alarm system for local debts, the report said.

The Ministry of Finance restarted selling bonds on behalf of local governments in 2009 to help finance its 4-trillion-yuan ($586 billion)  stimulus package.