Chinese Local Governments Sell More Bonds for Infrastructure Stimulus

Around 20 localities in China are utilizing extra government bonds this year to finance infrastructure projects, in yet another round of efforts to boost the country’s slowing economy.

As of this week, at least 19 cities and provincial-level regions have announced their available unused special-purpose bond (SPB) quotas. The moves follow the State Council’s instruction in August for local governments to use more than 500 billion yuan ($70 billion) in unused SPB quotas for investing in infrastructure.