(Yicai Global) Nov. 30 -- The Department of Finance in China's central southern province of Hunan issued USD11.17 billion (CNY73.8 billion) of local government bonds through open tendering on the Shanghai Stock Exchange. It marked the second time that Hunan has issued government bonds on the exchange and the largest local government bond issuance on the exchange.

Underwriters remained active during tendering, with the combined tendered amount from 19 securities companies reaching CNY87.21 billion, 1.18 times the issuance amount. They placed CNY5.81 billion of winning bids. This shows that investment entities recognized the value of the local government bonds, China Securities Journal reported yesterday.

Hunan issued CNY33 billion of local government bonds on the Shanghai Stock Exchange on Sept. 8. The province has issued CNY106.8 billion of local government bonds on the exchange, making it the exchange's largest local government bond issuer.

Some 19 provinces and municipalities have issued CNY870 billion of local government bonds in 32 sessions on the exchange. The local government bond market will focus on enhancing liquidity in the secondary market and introducing innovative local government bonds and trading mechanisms.