20. When describing the development of the Chinese municipal bond market, the following statement appeared on CNBC:

Foreign investors will still have some lingering concerns, particularly over local government finances, however. Municipalities would need to improve the disclosure of their accounts, and the central government will probably need to impose debt limits as well as authorize the big three U.S.

agencies to start rating the municipalities, said ANZ’s Li-Gang.26 Explain why these actions would be important in the development of China’s municipal bond market.