Beijing has instructed local governments to submit their plans for issuing special-purpose bonds as soon as possible as China’s economic growth continues to slow, said Caixin.
The Ministry of Finance and the National Development and Reform Commission (NDRC), the country’s top economic planning agency, issued the directive at a meeting Friday in Beijing.
Local governments have begun submitting plans to Beijing that show how the money raised from issuing special-purpose bonds will be used, according to an official from a local government’s financial department who attended the meeting. Once they receive the NDRC’s approval, they can start preparations to issue the bonds.
The directive signals that central government policymakers are in a hurry to square away funding for growth-boosting infrastructure projects amid fresh signs that growth is slowing, reported Caixin.