MNI POLICY: China Local Govt Bonds Surge Supports Recovery

China has accelerated the issuance of local government special-purpose bonds as a key component of active fiscal policy, the Ministry of Finance said. Newly issued LGSPBs amounted to CNY2.56 trillion as of August 16, 51% more than a year ago with proceeds of CNY2 trillion disbursed by end-July, and about 88% of the bonds carry maturities of 10 years or longer, the Ministry said. The ministry expects to complete the issuance of LGSPBs before October. Separately, both general budget revenues and tax revenues registered declines to the end of July. Budget revenue in the first seven months fell 8.7% y/y to CNY11 trillion, while tax revenue was down 8.8% y/y at CNY10 trillion, MoF data showed. National public expenditure in January-July decreased 3.2% y/y to CNY13 trillion, including CNY11 trillion in local public expenditure, data showed - on MNI Policy Main Wire and email now - for more details please contact sales@marketnews.com.