Beijing is looking at various ways to kick-start its bond market and more efficiently channel public savings into the economy.
Banking and securities officials said that among the plans were the launch of municipal bonds on a trial basis and corporations issuing convertible bonds.
Chen Yuan, governor of China Development Bank, one of China's three policy banks, said one option under consideration was 'to select a few pilot provinces and cities to issue long-term municipal bonds'.
Financially-sound coastal regions would have priority and the municipal bonds could be denominated in yuan or US dollars.
The money raised would go towards urban infrastructure spending, he said.
This would alleviate the burden on local governments, while enabling the central government to better re-allocate its funds.
