Chart of the Day: Local Government Bond Sales Spike in Third Quarter
Local government issued bonds in the third quarter worth 2.39 trillion yuan ($345 billion), up 43% year-on-year and the second-highest amount in a single quarter since 2015, after Beijing called for more infrastructure investment to bolster flagging economic growth.
A total of 748.5 billion yuan worth of local government bonds were issued in September, up 110% year-on-year, according to Caixin calculations based on government data.
Beijing has been calling on local governments to speed up the issuance of special-purpose bonds to fund infrastructure investment in a bid to boost the country’s slowing economic growth. Special-purpose bonds are often used to finance infrastructure projects and can be repaid only by income from those projects.
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