China's infrastructure stimulus

China uses special bonds to lure foreign investors

As the Sino-US trade war slows down GDP growth, Beijing is reforming its state infrastructure bonds to stimulate both international demand and infrastructure investment.
China will issue more special bonds to finance infrastructure projects.
China will issue more special bonds to finance infrastructure projects.

A large uptick in the issuance of so-called special bonds in China is likely to occur following a government notice that could make special bonds more market-driven and could attract more international investment.

Special bonds are Chinese local government bonds which raise funds for specific infrastructure projects like railways and power stations.

“As the next step, the relevant state departments will direct local governments to accelerate the pace of bond issuance to expand investment,” said a statement posted on the Chinese government website on Tuesday.

Rmb859.8 billion $124.3 billion of special bonds were issued in China in the first five months this year,...

¬ Haymarket Media Limited. All rights reserved.

FinanceAsia has updated its subscription model.

Registered readers now have the opportunity to read 5 articles from our award-winning website for free.

To obtain unlimited access to our award-winning exclusive news and analysis, we offer subscription packages, including single user, team subscription (2-5 users), or office-wide licences.

To help you and your colleagues access our proprietary content, please contact us at subscriptions@financeasia.com, or +(852) 2122 5222

Article limit is reached.

Hello! You have used up all of your free articles on FinanceAsia.

To obtain unlimited access to our award-winning exclusive news and analysis, we offer subscription packages, including single user, team subscription (2-5 users), or office-wide licences. To help you and your colleagues access our proprietary content, please contact us at subscriptions@financeasia.com, or +(852) 2122 5222