(Beijing Bloomberg) The Chinese government may allocate 7.2 trillion yuan (RMB, Same, Same, 1.49 trillion yuan) for infrastructure construction and support the economy affected by the epidemic.
The above numbers are obtained from Bloomberg based on official reports, and this will be a key change in the shift of the Chinese government from controlling debts to supporting the affected affected economy.
Citi Group: China has entered a new cycle of infrastructure development
People familiar with the matter said that the Chinese government considers 2023 local special bonds with a limit of 1.5 trillion yuan in advance to increase infrastructure.This may create a precedent for local governments to raise funds for the use of local debt in the following year.
Citi Group said that as the Chinese government expands its financial support, China's infrastructure investment may be 7%more than last year.
Yu Xiangrong, chief Chinese economist in Citi Group, believes that China has entered a new cycle of infrastructure development, which will be a new normal.He expects that the overall growth of fixed asset investment this year will reach about 6%, and contribute two percentage points to China's GDP's growth (GDP) growth.
When Chinese official presided over the meeting of the CPC Central Committee of the CPC Central Committee in April this year, it emphasized the importance of infrastructure construction to economic development, in order to achieve a GDP growth goal of about 5.5%.
However, it is reported that although the Chinese government has spent a lot of money supporting infrastructure, the growth of overall infrastructure investment may not increase significantly.The causes of subject to control include the risk of local governments must still control the risk of stealth debt. Whether the source of infrastructure financial funds can be supported by the loan of commercial banks and private investors, and in recent years, it is difficult for local governments to find enough infrastructure projects.
