China accelerates special-purpose bond issuance to stabilize investment

BEIJING - China's Ministry of Finance (MOF) unveiled a guideline on Tuesday to accelerate the issuance of special-purpose bonds by local governments to stabilize investment, expand domestic demand, and strengthen areas of weakness.

The ministry has urged local authorities to speed up preparations for the issuance in August and September so as to complete at least 80 percent of the annual quota by the end of next month, while the majority of the remaining 20 percent is expected to be accomplished in October.

Besides canceling requirements for the seasonal balance of issuance, the MOF has also lifted the duration limit on the bond portfolio and streamlined disclosure procedures to give local governments greater flexibility, according to the document.

Provincial-level governments and authorized municipal governments are allowed to issue special-purpose bonds to raise funds for the development of public-interest projects.

China's fixed-asset investment rose 5.5 percent year-on-year in the first seven months of the year, down from 6 percent for January-June, data from the National Bureau of Statistics showed Tuesday.

The country has highlighted efforts to keep employment, the financial sector, foreign trade, foreign and domestic investments, and expectations stable in the second half of the year, according to a key meeting of the Political Bureau of the Communist Party of China (CPC) Central Committee held on July 31.

China will keep its economy on a stable and healthy development track with a proactive fiscal policy and prudent monetary policy in H2.