China issues 1 trillion yuan in special bonds
China has decided to issue 1 trillion yuan ($136.79 billion) of special treasury bonds during the fourth quarter, expanding budgeted fiscal deficit rates to around 3.8 percent for the year, up from 3 percent.
The funds raised through government bonds will all be allocated to local regions, via the mechanism of transfer payment, according to the plan approved by the country's top legislature on Tuesday.
Around 500 billion yuan is planned to be utilized within the year, while the remaining half trillion yuan will be used next year.
According to the finance ministry, the funds raised will be mostly used in eight areas including reconstruction after disaster, flood prevention and management projects, and natural disaster emergency response capacity improvement projects.
The ministry said it will timely launch the bond issuance work to ensure completion of the issuance on schedule.
It will also ensure smooth transfer payment work and strengthen regulation so that the funds will be used as planned, the ministry said.
China approves decision on front-loading 2024 local government bond quota
The sixth session of China's 14th National People's Congress Standing Committee passed a decision on Tuesday authorizing the State Council to allocate some of the new local government bond quota in advance.
According to the decision, the State Council could allow local governments to front-load part of their 2024 bond quota to maintain steady investment, expand domestic demand and strengthen weak links.
The State Council would determine the amount a local government could borrow ahead of time, and the measure would last for four years, through to the end of 2027.
The measure will help speed up the issuance and use of local government bonds and ensure the funding needs of major projects in key areas.
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