MNI China Press Digest, June 24: Funds, Investment, Hainan

     BEIJING (MNI) - The following lists highlights from Chinese press reports

on Wednesday:

     Local governments in China are required to report the amount of fiscal

funds they need and how they will be used to the Ministry of Finance by the end

of June, 21st Century Business Herald reported. Following these reports, the

Ministry would then assign the CNY2 trillion of funds made available by

expanding the deficit and issuing special Treasury bonds to local governments as

soon as possible, the Herald reported citing unnamed sources. Of this CNY2

trillion, CNY1 trillion from the expanded deficit can be used for investment or

general government spending, while the balance of CNY1 trillion from the

issuance of Treasury bonds should focus on infrastructure investment. Local

governments are allowed to use part of the funds from special Treasury bonds to

support low income earners and difficult enterprises and pay wages to civil

servants, the newspaper said citing a source close to the Ministry.

     China's investment in the transport sector for the first five months of

2020 grew by 0.9% y/y, turning positive for the first time this year and

indicating the investment gap caused by the coronavirus epidemic has been

filled, the Beijing Business Today reported. The newspaper cited Ministry of

Transportation data which showed that, in May, transport investment was CNY343.3

billion, a rise of 27% y/y, accelerating 8.9 percentage points compared with

April. Currently, 99.84% of transportation projects under construction have

resumed operation, the newspaper added. 

     China will issue a total of CNY3.5 billion from the central budget in two

batches to boost infrastructure and cover the shortfall in public services in

Hainan and accelerate the construction of the Hainan Free Trade Port, the

Economic Information Daily reported. The Daily cited the National Development

and Reform Commission, which said the funds would be invested in major

infrastructure such as bonded zone supervision facilities. The funds would also

support leading industries such as tourism and strengthen epidemic prevention

systems in Hainan. 

--MNI Beijing Bureau; +86 (10) 8532-5998; email: wanxia.lin@marketnews.com

--MNI Sydney Bureau; +61 405322399; email: lachlan.colquhoun.ext@marketnews.com

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