(Beijing Comprehensive News) The Ministry of Finance of China stated that it will issue some new local government debt quotas in 2024 to reasonably ensure local financing needs.
According to the Securities Times report, the Ministry of Finance of China proposed two measures to strengthen the effectiveness of special bonds last Friday (November 17). One is to issue a quota in advance to strengthen the connection of annual policy;Bond management, moderately expand the area of special bond investment and use it as the scope of project capital, ensure the demand for construction funds for key projects, and at the same time guide the social investment and improve the benefits of bond funds.
The Ministry of Finance of China disclosed that from January to October from all over China, it has issued a special bond for key areas such as municipal construction, industrial park infrastructure, and social undertakings.Essence
Reports pointed out that local government special bonds have an important role in expanding effective investment and promoting economic recovery.Some market participants predict that in the fourth quarter, the debt limit may be added in the fourth quarter.
Wen Bin, chief economist of Minsheng Bank, believes that the batch quota in 2024 may be issued at the top of November or December to accelerate local bond issuance and use of funds.Zhang Jun, chief economist of Galaxy Securities, predicts that the batch quota of special bonds may be issued this year at a rate of 50%to 60%, which will help improve the efficiency of bond issuance in the first quarter of the following year.
The Central Financial Work Conference emphasizes the establishment of a long -term mechanism for preventing and resolving local debt risks.The Shanghai Securities News reported that the scale of China's local bond issuance reached 8.6 trillion yuan on November 2 this year, an increase of 1.2 trillion yuan from last year, a record high.
