China Allows Early Local Debt Issuing Amid Economic Slowdown

Local governments will be able to use part of their bond quotas earlier than usual next year, following the recent passage of a bill aimed at boosting slowing economic growth.

The Standing Committee of the National People’s Congress (NPC), China’s top legislature, passed a bill last week allowing local governments to issue 1.39 trillion yuan ($202 billion) worth of bonds before the legislature officially approves a 2019 quota in March, according to its Saturday statement (link in Chinese). The amount is about 64% of the 2018 quota set by Beijing for new issuance of local debt.