Bond sales intended to replace heavy reliance on special borrowing vehicles

China will allow 10 provinces and cities to make direct bond issues starting this year, a move that financial experts said might signal full rights for all local governments to issue debt to support the urbanization drive.

Local governments that will be allowed to sell bonds include those in the cities of Beijing, Shanghai and Shenzhen, wealthy eastern provinces such as Zhejiang and Jiangsu, and two central and western provinces, The Wall Street Journal reported on Monday, citing an anonymous source.