China approves bill on front loading 2024 local bond quotas, issuance of new sovereign debt

CHINA’S top parliament body has approved a bill that will allow local governments to front load part of their 2024 bond quotas and issuance of new sovereign debt, state media said on Tuesday (Oct 24), in a move to support the economy.

The approval by the standing committee of the National People’s Congress (NPC), as it concludes a five-day meeting which began on Oct 20, marks an extension of an expired bill on the issuance of new bond quotas in advance.

The top parliament body also approved the adjustment of the central government’s budget for 2023, state media reported.

China has previously let local governments issue bonds ahead of the annual session of the parliament, which approves government budget plans and is usually held in March.

Local governments had been told to complete the issuance of the 2023 quota of 3.8 trillion yuan (S$710.4 billion) in special local bonds by September to fund infrastructure projects. REUTERS