Local government bond issuance in China for the first ten months of 2018 has exceeded 4 trillion yuan.
The period from January to October saw the issuance of 4.055414 trillion yuan in local government bonds according to data from China Chengxin Credit Rating Group.
Special bonds accounted for 46.63% of this amount at 1.891151 trillion gun, while standard bonds accounted for 53.57%, or 2.164263 yuan.
New bonds accounted for 52.86%, or 2.143616 trillion yuan, while roll over bonds accounted for 32.37%, or 1.312771 trillion yuan, and refinancing bonds 14.77%, or 599.027 billion yuan.
The data comes just after the State Council issued the “Guidance Opinions on Maintaining the Vigour of Support for Shortcomings in the Infrastructure Sphere” (关于保持基础设施领域补短板力度的指导意见), which calls for the strengthening of management of local government special bond funds and projects, as well as improvements to local government special bond systems, optimisation of special bond issuance procedures, and “rational” scheduling arrangements.
“Given the the current expansion of downwards pressure on the economy… it is necessary to fully implement active fiscal policy, accelerate the issuance of local government bonds and special bond especially; raise the market-based level of local government special bonds, and fully employ the role of local government bond special bonds with regard to stabilising investment, expanding internal demanding, and making up for shortcomings,” said China Chengxin analyst Wang Yuanhui (汪苑晖) to state-owned media.