China issues $180.4 billion in local government bonds in May
Published: Jun 30, 2022 11:22 PM
File Photo: A worker counts Chinese currency renminbi banknotes at a bank in Tancheng County of Linyi City, east China's Shandong Province, April 11, 2013. Photo:Xinhua
File Photo:Xinhua

Bonds issued by China's local governments totaled 1.21 trillion yuan ($180.4 billion) in May, accounting for about 40 percent of this type of bonds issued from January to May this year, according to statistics from the Ministry of Finance (MOF) on Thursday.

During the first five months of 2022, local governments issued a total of 3.3 trillion yuan ($495 billion) in bonds, of which general bonds stood at 889.3 billion yuan ($132 billion), while the special bond issuance was 2.4 trillion yuan ($362.7 billion) in the period, MOF data showed.

By the end of May, the outstanding local government debt was about 33.25 trillion yuan ($4.9 trillion), which was within the official limit for 2022, said MOF.

Local government bonds are typically used to finance local public works, such as transport, communications, housing, education, hospitals and sewage systems.

China's top economic planner, the National Development and Reform Commission (NDRC), on Wednesday called for further preparation for special bond projects to ensure that special bonds are put into project construction in a timely manner after their release.

The NDRC has asked economic planners at all levels to vigorously advance major projects and actively expand effective investment.

The top economic planner said it will accelerate the implementation of the 102 major projects in the 14th Five-Year Plan (2021-25), including areas such as public transportation, energy and telecommunications.

The NDRC also stressed the importance of increasing investment in manufacturing and high-tech industries and strengthening efforts to boost weak links in areas related to people's wellbeing.