Local governments issued US$37 bn in bonds in October
Push for infrastructure encouraged major projects, including areas of railway, highway, airports, energy and agriculture
The pace of local government bond issuance slowed down in October, with a total of 256 billion yuan (US$37 billion) in issued bonds, a significant drop from September, Securities Daily reported.
Over the first 10 months, a total of 4.06 trillion yuan of local debt was issued.
The central government, which is keen to promote infrastructure investment, issued a guidance to encourage major projects in the areas of railway, highway, water transport, airports, water conservancy, energy, agriculture and rural areas, ecological environment protection and social wealth.
To ensure funds for infrastructure projects, the Ministry of Finance issued three documents in a row to urge local governments to issue new special bonds in September and October.
As a result, the issuance of special bonds was booming with increased variety, including areas of rail transit, hospitals, education, garbage disposal and even park development.
By the end of September, 1.25 trillion yuan in new special bonds were issued. At present, the amount of new special debt is about to complete the whole year’s quota of 1.35 trillion yuan.