China’s Ministry of Finance said it has made an early allocation of 2020 special-purpose bond (SPB) quotas totaling RMB 1 trillion ($142.4 billion) to provincial-level governments as policymakers step up efforts to support flagging economic growth by encouraging investment in infrastructure such as roads, sewers and public services, reported Caixin.
The allotment amounts to 47% of the SPB quota for 2019, which was RMB 2.15 trillion, and is within the cap of 60% approved last year by the National People’s Congress, the ministry said in a statement on its website Wednesday. The early issuance has been made to “speed up the sale of bonds to boost effective investment and increase domestic demand,” it said.
Several financial officials in provincial-level governments told Caixin they have received their quotas, less than three months after the State Councilannouncedit would allow SPB issuance for 2020 to start early to ensure funds are in place to allow projects to proceed in the first quarter of next year.
