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Local Government Refinancing Bonds Key For 2024

CHINA PRESS
MNI (BEIJING)

The government will increase use of refinancing bonds next year to address local government debt risk, according to analysts interviewed by Yicai.com. Given local governments will likely face declining revenue from land transfers next year, authorities will issue CNY2-2.5 trillion special refinancing bonds, according to Wang Qing, chief macro researcher at Golden Credit Rating. Following policymakers' recent commitment to strengthen fiscal policy moderately, Wang expects next years’ fiscal deficit of 3.5% and new local government special bonds to reach CNY4 trillion in 2024, an increase of CNY200 billion from over 2023.

MNI Beijing Bureau | lewis.porylo@marketnews.com
MNI Beijing Bureau | lewis.porylo@marketnews.com

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