Q1 Refinancing Bonds Up 73%

Local governments issued CNY440 billion of refinancing bonds in Q1, a 73% increase over the same period last year, according to information released by the Ministry of Finance. According to analysts, the figure reflects borrowers' elevated desire to repay principal this year. About CNY1.36 trillion special use-of-proceeds bonds were issued, a 4.5% y/y increase and near 36% of the forecasted 2023 total. The bonds' proceeds are aimed at industrial park infrastructure (33%), social undertakings (19%), transportation infrastructure (16%), guaranteeing housing projects (15%), next generation infrastructure (0.8%) and new energy projects (0.2%). Borrowers will issue the majority of bonds by the end of Q3, according to Yicai.