State media announce new RMB300bn local infrastructure fund

State media have announced the impending issuance of a total RMB300 billion in bonds from the China Development Bank and Agricultural Development Bank to support local infrastructure, possibly the first tranche of RMB1 trillion in bonds to be issued by China’s national policy banks to help fund local construction projects through a special construction fund. State-run Economic Information Daily reported that the central government would provide the bonds to said banks at a 90% discount, according to an implementation plan for the bonds sourced to an unnamed province’s Development and Reform Commission. Those banks will then transfer the bonds to the Postal Savings Bank, which will establish the fund. The Daily suggested that the RMB300 billion could be the first tranche of an RMB1 trillion injection “previously reported on by foreign media” that could be rolled out over the next three years.