China to accelerate local bond issuance to cushion economic slowdown

CHINA will accelerate its issuance of special bonds by local governments in order to stabilise the country's slowing economy, the finance ministry said on Monday (May 30).

As of May 27, local governments had issued a net 1.85 trillion yuan (S$379.5 billion) in special bonds, a rise of 1.36 trillion yuan from a year earlier, accounting for 54 per cent of a quota that had been allocated, the ministry said in a statement.

China has set an annual quota of 3.65 trillion yuan for local government special bonds this year.

The ministry said local governments should ensure the basic completion of special bond issuance for 2022 by the end of June and the usage of the raised funds by the end of August.

Premier Li Keqiang said last week that China will strive to achieve reasonable economic growth in the second quarter and stem rising unemployment, after rolling out a raft of supporting policies. REUTERS