The circulation of local special bonds in China has been reduced by nearly half. As the economic recovery has lost motivation, government investment also shows signs of slowing down.
According to the data compiled by Bloomberg, the Chinese local government issued a special debt of 299.5 billion yuan (RMB, Same as S $ 57 billion) in May in May.EssenceFrom January to May of this year, the total amount of special bonds issued by this year was 1.89 trillion yuan, accounting for 50%of the issuance amount this year, and 54%at this time last year.
The local government's special bonds are mainly used to provide financing for infrastructure investment. The main driving force of China's economic growth is infrastructure investment.In recent months, the slowdown in circulation has coincided with the recovery of the economy after the epidemic.
Beijing may try to suspend the introduction of fiscal stimulus measures to prevent the economic reckless wind from intensifying.The global economy has weakened, some developed countries have declined, the recovery of China's property market has fallen, and consumer expenditure has not yet returned to the level before the epidemic.
Pantheon Macroeeconomics chief Chinese economist Duncan Wrigley said that in view of the slowdown of growth, not collapse, and the service industry is still strong, Beijing is monitoring the situation instead of making knee jump reflexes.He said, but if the data continues to weaken in the next few months, this situation may change.
He said that the significant slowdown of service industry activities may promote Beijing to take action.According to data released on Wednesday (May 31), the Chinese service industry continued to expand in May, but the growth rate was lower than the previous months.
Official data shows that with the reduction of the government's reduction in the issuance of special bonds, the growth rate of infrastructure investment has slowed down.
CITIC Securities Chief Economist clearEnd.
