China Financial Bonds Support Infrastructure, Innovation-Official

China’s policy-based and developmental financial bonds with a combined scale of CNY300 billion announced by the State Council last week, will be used to boost infrastructure such as transportation and water conservancy, innovation and other regional projects, an official from the People’s Bank of China told the PBOC-run newspaper Financial News. The PBOC will take the lead in supporting the China Development Bank and the Agricultural Development Bank of China to raise the funds and the central government will give an appropriate interest discount for two years, the official said. Such instruments are conducive to guide financial institutions to issue medium and long-term low-cost loans to support project construction without resorting to excessive money supply, the official said.