Aerial photo taken on March 22, 2022 shows the construction site of a health post at the Shenyang International Expo Center in Shenyang, northeast China’s Liaoning Province. (Xinhua/Yang Qing)
By the end of July, a total of 3.47 trillion yuan ($514.4 billion) of new special purpose bonds had been issued in China, with localities nearly completing the full issuance, six months ahead of the year. latest, according to data from the Chinese Ministry of Finance. show.
Special purpose bonds are an important policy tool for dealing with downward economic pressure as well as stimulating investment, especially in infrastructure, manufacturing and high-tech industries, analysts said.
As issuance has accelerated, local governments have also strengthened oversight of the use of funds through a number of measures, including mandatory adjustment and reduced amounts for local governments.
In addition to the existing nine areas, including transportation, ecology and public welfare, the use of special purpose bonds this year continues to grow, especially in new energy and new infrastructure.
As the COVID-19 outbreak has been largely brought under control, a number of local governments have accelerated the construction of infrastructure projects, aiming to increase effective investment to further stabilize the economy.
By the end of July, special bond funds had supported the construction of more than 26,100 projects, of which around 14,400 are under construction and around 11,700 are new projects.
In southern China’s Guangdong Province, the Zhongshan-Shenzhen Ship Canal is under construction, with the main cable of the Hong Kong-Zhuhai-Macao Bridge already more than half complete. The project has issued a total of 4.73 billion yuan of special purpose bonds, including 377 million yuan of new issues this year.
In Gangbei District of Guigang, south China’s Guangxi, 92% of this year’s special purpose bonds were invested in new energy projects, with a cumulative issuance amount of 1.55 billion USD. yuan, stimulating efficient investment and completing the local industrial chain.
In addition, special bonds have strengthened investment in benefiting people’s livelihoods and solving problems faced by ordinary people.
In Shenzhen’s Baoan District, the nursing home construction project issued a total of 179 million yuan of special bonds, and the main body of the project has been completed and is expected to be completed by the end of the year.