New Special Bond Issuance to Approach 1.3 Trillion Yuan in Q1 2022

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The issuance of new special bonds by China’s local governments is expected to approach 1.3 trillion yuan in the first quarter of 2022, as authorities seek to stabilise economic growth amidst uncertain condtitions.

East Money (东方财富) expects new special bond issuance to reach 1.2981 trillion yuan in the first quarter of 2022, as part of efforts to stabilise investment levels.

The Chinese government has set a new special bond issuance quota of 3.65 trillion yuan for 2022, with 1.46 trillion yuan in this quota already dispensed as of the end of 2021, leaving another 2.3519 trillion yuan to be allocated.

Zhang Yiqun (张依群) from the Chinese Society of Finance (中国财政学会) said to state-owned media that the copious issuance volume for the first quarter indicates that China’s active fiscal policy will be front-loaded in 2022, in order to stabilise full-year economic expectations as well as give the year a positive start.

According to Zhang the second quarter issuance quota will be in excess of 1 trillion yuan, which means that well over 60% of the new special bond issuance quota will be dispensed in the first half of 2022.