Beijing Issues 1.46T Yuan in New Special Bond Quotas for 2022

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The Ministry of Finance (MOF) has already issued quotas for new special bond issuance to Chinese local governments in 2022.

As of 15 December China had seen the issuance of 3.42 trillion yuan in new special bonds by Chinese local governments in 2021, accounting for 97% of the quota for the year, according to a report from state-owned media.

MOF has also issued 1.46 trillion yuan in new special bond quotas for next year, with nine key focal areas including transit, energy, forestry, agriculture, hydrological projects and environmental protection.

The move comes after a recent meeting of the State Council flagged the release of some special bond quotas for 2022 prior to the end of 2021.

The recently convened Central Economic Work Meeting called for “actively raising the effectiveness of fiscal policy,” as well as greater focus on “accuracy and sustainability” and the “organic integration of cross-cyclical and counter-cyclical macro-economic adjustment and control policies.”