China is on track to issue more than RMB 1.5 trillion ($224 billion) in local government bonds during June, a monthly record underwriting infrastructure investments designed to stimulate the economy, reports Nikkei Asia.
Local governments nationwide have issued RMB 1.41 trillion in bonds this month through Sunday, Chinese media report, up nearly 80% from June 2021. This figure tops the record of RMB 1.3 trillion in May 2020, when China was focused on stabilizing its economy from the initial coronavirus shock.
The June bond total will exceed RMB 1.5 trillion when including scheduled issuances through Thursday. China’s local governments issue “special bonds” to fund infrastructure projects. More than RMB 2.54 trillion yuan in these special bonds were issued for the year through June 16, the Finance Ministry said, triple the total from the same period last year.