Trial now
USDCAD TECHS

Corrective Pullback

US TSYS

Risk-On Carries On

US EURODLR OPTIONS

Late Trade, March Calls

AUDUSD TECHS

Bounces Off Key Support

MNI BRIEF: China To Issue Over CNY1Tn Special Bonds In Q4: MOF

SINGAPORE (MNI)

The government wants to support a slowing economy.

True
Sign up now for free access to this content.

Please enter your details below and select your areas of interest.

China will push local governments to issue all of their special bond allocations by the end of November and will further implement tax and fee cuts to keep the economy at "a reasonable range", officials of Ministry of Finance told reporters on Friday in a briefing.

According to Li Dawei, a senior official, China issued a total of CNY2.22 trillion of local government special bonds in the first three quarters this year, which means about CNY1.4 trillion of LGSB will be issued in the last quarter.

Local authorities have accelerated issuance since August to support key projects, Li said. Tan Long, also an MOF official, said the ministry will closely watch the economic situation and study measures to boost the economy, noting 2021 will see over CNY700 billion in tax and fee cuts.

However, any tax and fee cuts are expected to pressure fiscal revenue, which fell 2.1% year-on-year in September, said official Liu Jinyun. Also contributing the decrease to economic slowdown and high comparative base. The central government will enhance the transfer payment to support local ones, he said, noting it has reached CNY2.7 trillion by the end of September.