MNI China Press Digest June 27: H2 Support, Power Grid, Bonds

Highlights from Chinese press reports on Tuesday:

• The government will implement proactive fiscal support to bolster the economy in H2, according to Finance Minister Liu Kun. In a report delivered to the State Council, Liu said overall national finances remain in good health, with general expenditure and revenue remaining on track and within budget. For next steps, China will take measures to resolve local government debt risks and increase financial and accounting supervision. (Source: Yicai)
• China’s overall power supply remains stable and under control but some small shortages are expected in some local areas, according to Xin Baoan, chairman at the State Grid Corporation of China. Speaking at the Davos forum in Tianjin, Xin said the population was demanding more electricity as the impacts of climate change became more severe. Authorities will be taking steps to optimise power usage across the grid over the next months. (Source: Wind)
• China is expected to complete its 2023 special bond issuance by the end of Q3, as the government intensifies fiscal policy to help stabilise the recovery, according to Feng Lin, a senior analyst at the Research and Development Department of Dongfang Jincheng. According to Wind data, local governments have issued CNY2.1 billion of special bonds in the first five months of the year, accounting for 57% of the planned CNY3.8 trillion. Feng said issuance so far lagged behind the same period in 2022, but was faster than 2021. Authorities have used 50% of funds on infrastructure, he said. (Source: Securities Daily)