China Should Consider Special Treasury Bonds To Fill Funding Gap In H2: Journal

China should consider issuing special treasury bonds or front-load next year’s local government special bond quota in the second half of this year to help fund infrastructure investment, the China Securities Journal reported citing analysts. China aims to issue all CNY3.65 trillion of this year’s special bonds by end-June to help accelerate infrastructure construction, leaving a funding gap in H2, the newspaper said. Other potential policies to fill the gap include increasing the credit lines of policy banks, lowering the reserve requirement ratio, or putting forward pledged supplementary lending (PSL), the newspaper said citing Xiong Yuan, chief economist of Guosheng Securities.