Caixin
Dec 31, 2018 05:19 PM

China Allows Early Local Debt Issuing Amid Economic Slowdown

A clerk counts yuan notes at a bank in Hangzhou, Zhejiang province, on Nov. 12, 2015. Photo: VCG
A clerk counts yuan notes at a bank in Hangzhou, Zhejiang province, on Nov. 12, 2015. Photo: VCG

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.

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