The National Association of Financial Market Institutional Investors has issued guidance to curb short-term bond issuance by local government financing vehicles, according to multiple sources familiar with the matter. The association recently asked LGFVs to issue refinancing bonds with maturities of at least two years, effectively discouraging them from selling short-term notes. It has also tightened scrutiny of bonds issued by LGFVs. This is the latest move by Chinese authorities to reduce debt risks, pushing LGFVs to transform into market-oriented companies.