MNI POLICY: China To Expand Infrastructure Local Special Bonds

By Wanxia Lin

     BEIJING (MNI) - China will increase issuance of infrastructure-backed local

government special bonds to help shore up the virus-hit economy, said Liu Shihu,

deputy director of the Investment Division at the National Development and

Reform Commission (NDRC) at a briefing Tuesday.

     "China will step up preparations for infrastructure projects with

profitability as well as those in the public service area," said Liu.

     Here are other key points from the briefing:

     - The U.S. and Europe have made significant adjustments to their

macro-economic policies recently, while China has sufficient policy tools and

will increase hedging policies in time to minimize the impact of the

coronavirus, said Li Hui, deputy director of the General Division.

     - China will lower the domestic price of refined oil products to its price

floor of $40 dollar per barrel from Wednesday, in respone to the sharp fall of

global oil prices, said Peng Shaozong, deputy director of the Price Division. 

     - Nearly all companies in Zhejiang, Jiangsu, Shandong, Guangxi provinces

and Shanghai and Chongqing cities have resumed operations, said NDRC Spokeswoman

Meng Wei.

     - The power consumption of the non-ferrous metal industry has reached the

normal levels seen last year. While the consumption in the pharmaceutical,

chemical and electronic industries has recovered more than 90%, and that in the

steel, machinery and textile sectors have recovered 80%, said Meng.

     - The Commission had approved 19 fixed asset investment projects with a

total outlay of CNY185.3 billion, mainly in the area of transportation and

high-tech industries, said Meng.

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

--MNI London Bureau; tel: +44 203-586-2225; email: les.commons@marketnews.com

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