Source: Bloomberg
Since 2024, China's enthusiasm for investors in shore has continued to increase the enthusiasm of urban investment bonds.The company's financing costs set a record low after falling.
China Finance Minister Lanfo An mentioned at a press conference during the two sessions that further promoting a package of debt plans to come into effect, and gradually resolve risks by arranging fiscal funds, reducing expenditure, and revitalizing existing asset resources.The scope of localized debt policy support is reportedly expanded, the case of "re -loan repayment" in Guizhou Province, and local governments to accelerate asset realization, etc., all reflect the idea of properly resolving the risk of stock debt from top to bottom.
After the urban investment belief is recharged again, the waves in the first and secondary bond market have invested in heat waves.According to Bloomberg's summary data, the average rate of votes in the shore city bonds in February was 2.91%, which was the first time in history to be less than 3%; it has further dropped to near 2.75%since March.The credit spread of AA-rating bonds in the first year of the second-level market in the first year of AA-rating city bonds continued to fluctuate near the low level at a low level at a record low of about 76 base points.
The following is a variety of ways and methods for the central and local governments to resolve debts:
loose tightness
Since the meeting of the Central Political Bureau of the Mainland Government's Central Committee in July last year proposed to formulate and implement a package of debt, the Ministry of Finance issued a special recycling bond to promote the resolution of hidden bonds in various regions, and determined that 12 provinces, autonomous regions and municipalities were as high -risk areas as high -risk areas as high -risk areas.EssenceAs of the end of last year, it was reportedly issued about 1.4 trillion yuan (RMB, the same below, S $ 259.6 billion).The Shanghai Securities Journal quoted analysts that the scale of special reinsurance bonds this year is expected to exceed one trillion yuan.Guizhou Province became the first province to issue special recycling bonds this year.
In addition to reinforcement debt replacement of hidden debts with a long period of time and lower interest rates, the policy signals of curbing new hidden debt are also clear.Lanfo An said it will continue to reduce the number of financing platforms; according to the data provided by the S & P, the application for issuance of about 75.2 billion yuan in the first two months of this year has been terminated, the highest in 2021;By the past two months, the proportion of newly returned to the funds raised by urban investment bonds was as high as 84%; all highlighted the trend of regulatory tightening since the fourth quarter of last year.
Coordinating resources
The provinces with relatively heavy debt burden are trying to use internal funds and resources to help the weak qualified city invest in debt repayment difficulties, and strive to protect the bottom line of public market bonds without breach of contract.Guizhou, Liaoning, Heilongjiang, Qinghai, Shaanxi and other places have stated that they will coordinate various types of capital resources and assets and steadily promote the resolution of stock debt.
In the case of "re -loving" in Guizhou Province to break the precedent, a state -owned enterprise rarely issued 1.8 billion yuan of bonds, raising funds for a dilemma in the province to pay off the bonds.The Huafu Securities Report pointed out that "re -loaning and repayment" is more flexible, and the efficiency of debt -to -debt efficiency is conducive to optimizing the debt structure of key debt -based bonds and optimizing the use of bond issuance.
Disposal assets
Active survival assets have also become one of the means for the government to deal with debt pressure.The budget report of the Ministry of Finance revealed that in 2023, the revenue of local state -owned capital operation budgets increased by more than 30 % to 448 billion yuan, mainly because locality increased asset disposal and increased the revenue of disposable property rights.
According to the official website of the Shenyang City Finance Bureau of the Liaoning Provincial Capital, by speeding up the cleaning of idle assets, promoting key asset disposal projects such as Olympic Sports Center, Heping District Culture and Art Center, and Hunnan District Talent Building, a total of 41.5 of state -owned asset disposal revenue was achieved in 2023100 million yuan.The Chongqing Municipal Government also said in January that the Jiulongpo District fully sorted out, inventory, activated idle and sleeping asset resources last year by more than 30 billion yuan.
In the context of the sharp decline in land transfer income and exacerbate local fiscal pressure, key provinces of debt -based bonds generally write the approach of realizing asset debt repayment into government documents.For example, this year's key tasks deployed by the Guangxi Budget Report include: Urges cities and counties to broaden the sources of debt funds and complete debt plans by reducing general expenditure, revitalizing stock capital asset resources, and asset securitization.
TheDebt Reserve and Payment System will also be an option. Guangxi and Chongqing have stated that they will explore or implement relevant mechanisms to ensure that the debt does not have any risks.Shaanxi also disclosed that risk resolution reserves have been set up in 2023, and six types of sale are set up to accurately assist in the areas of support.
Financial debt
Pan Gongsheng, the governor of the Bank of China, mentioned last November that guiding financial institutions in accordance with the principle of marketization and rule of law, equal negotiation with the financing platform, through the exhibition period, the new and old, replacement, etc., Strictly control the incremental debt.
The Hunan Budget Report clearly states that it will coordinate financial institutions to support debt, optimize local debt structures, and reduce debt interest costs.Earlier, the one -time debt of Yicheng Investment Company, Shandong, once triggered the cross -protection clause of the bonds; the company later announced that it has actively negotiated and resolved the debt overdue, and the repayment and some repayment period.
Francis Chan, a senior analyst at Bloomberg Industry Research, believes that after the two sessions, large Chinese banks may respond to the call for LGFV debt proposed by the Chinese government at a lower interest rate exhibition period, including hidden and non -standard debts.The report estimated that the LGFV openings of the four major lines totaled 6.2 trillion yuan.
Investment restricted
In addition to open source, throwing is also a policy direction.According to Reuters in January, the Chinese government demanded that some high -risk areas have slowed or suspended project construction to resolve local debt problems.Chen Chunping, vice chairman of Ningxia Autonomous Region, spoke in the Ningxia delegation last week that due to being included in high -risk areas of government debt, Ningxia's new investment and projects were limited.
Heilongjiang, Liaoning, Qinghai and other key bonds have mentioned in the local two sessions reports that strengthen government investment project management, but no more details are given.Inner Mongolia officials also stated during the two sessions that they must adhere to "too tight days" and save money as much as possible to resolve debts and improve people's livelihood.
The limited investment has also attracted the attention of local officials.According to a briefing of the National People's Congress, Du Huiliang, mayor of Ordos City, suggested in a speech at the Inner Mongolia delegation on March 6th that the implementation of local government debt management policies is based on the county area and do not engage in "one knife".
In 2022 and the urban investment bond data, the statistics of the city investment bond issuer's samples involved in a Sinon Treasure Index at the end of 2021 are assumed that the newly established urban investment platform has limited impact on data.
