The National Association of Financial Market Institutional Investors, which oversees China's interbank market, has instructed LGFVs with rising debt to halt new bond issuance. It told banking contacts that LGFVs whose outstanding bond balance has increased compared with the end of March 2023 should stop ongoing issuance and avoid new offerings. Total outstanding LGFV bonds stand at roughly 16 trillion yuan, of which about 5 trillion yuan will mature by the end of 2027. NAFMII already urged restraint on short-term bond issuance last week, making this the second tightening measure this month.