Local government debt issuance saw a sharp drop in November, recording 45.94 billion yuan, while October debt issuance hit 256 billion yuan, Securities Daily reported.

Li Yong, a chief financial researcher at Northeast Securities, said he expected local government debt to be issued in December will be approximately 85 billion yuan.

Meanwhile, by the end of 2017 there was a total of 1.73 trillion yuan in debt awaiting to be swapped into bonds.

In the first 11 months of 2018, 1.36 trillion yuan in bonds were issued under the swap program, which left 373.27 billion yuan needing to be swapped.

China’s local government debt-swap program, which started in 2015, hopes to shift 14.34 trillion yuan of implicit debt into bonds trading on the public market within a transition period of about three years.