Just in case anyone was worrying about running out bonds to buy China looks to be gearing up for a massive push towards urbanization through a bond market reform.
I'll admit, I've long been critical of how the Chinese do things and certainly I'm dubious of the viability of this massive of an effort. There are major structural deficiencies in China and to think that local government are going to be able to foot the tab for much of this is a stretch. Last time I checked many localities in China were underwater anyway and they still have to deal with slowing growth and a lower class clamoring for wage reforms. Not that any of that is necessarily a deal breaker, but, certainly should be cause for concern.
It's interesting however because to do this they would need to relax their foreign investment rules and really open themselves up transparency wise. I can't believe that they will be clamoring to open up the books to get investment, but then again maybe they don't need to. Add in their yearning to establish their own consumer as a larger part of their economy and I personally don't see how this all gets done.
Anyway, What say you guys? Is this the key to China re-establishing it's growth?