Local Government Bond Sales To Peak In Q2, Q3: Daily

China is expected to usher in a peak sales of local government special bonds between Q2 and Q3, to help boost infrastructure investment, aiming to complete the issuance of all CNY3.65 trillion special bonds by Q3, the Shanghai Securities Daily reported citing analysts. Local governments may accelerate and widen the use of special bonds to new areas such as urban gas and heating pipeline projects, the newspaper said. After the issuance of the main part of local government bonds in H1, local authorities could face certain fiscal pressure in H2 given increased anti-Covid-19 costs, which may mean higher deficits and issuing special treasury bonds, the newspaper said citing analysts.