日韩精品久久一区二区三区_亚洲色图p_亚洲综合在线最大成人_国产中出在线观看_日韩免费_亚洲综合在线一区

Global EditionASIA 中文雙語(yǔ)Fran?ais
Business
Home / Business / Policies

Bonds help to give GDP growth a shot in the arm

By Chen Jia | China Daily | Updated: 2019-07-17 09:18
Share
Share - WeChat
Given the slower income growth and the large gap of infrastructure financing, the government will rely more on funding through bonds. [Photo/IC]

China will increasingly rely on longer-term and special-purpose government bonds to finance construction and stabilize the economy, preventing the GDP growth rate slowing to a multi-decade low in the second half of this year, said economists.

In June, local governments issued 717 billion yuan ($104 billion) in special bonds, the record so far in 2019, accounting for nearly one-third of the total special bond issuance in the first half, the Ministry of Finance said on Tuesday.

During the January to June period, 64.8 percent of the funding from special bonds was directed toward fixed-asset investment, especially for infrastructure construction and shantytown renovation, said Hao Lei, head of the ministry's Budget Department.

"The rising financing requirements for infrastructure projects will drive up effective investment and enable more private funds to spur economic growth," said Hao.

The annual quota for special bonds was unchanged so far at 10.77 trillion yuan this year, around 44.73 percent of the total local government bond quota, according to the Ministry of Finance.

During the first half of this year, overall local government bonds, also including budgeted general bonds, increased by 2.18 trillion yuan. This amount was 70.7 percent of the new debt limit of 2019, compared with 15.5 percent at the same time last year, the ministry said.

"According to statistics reported by local governments, we predicted that the annual issuance target can be reached by the end of September, as required by the State Council's executive meeting," Hao added.

Policymakers issued a document in June that allowed local governments to use special bonds to raise capital for high-quality infrastructure construction projects.

The document also encouraged financial institutions to provide funding to companies related to the construction, including State-owned enterprises and local government financing vehicles, easing some previous restrictions on lending to the vehicles.

Jennifer Wong, vice-president credit officer of the Sub Sovereigns department, Moody's Investors Service, said that the use of special bonds proceeds as projects' capital can boost infrastructure investment and support economic growth, without adding direct debt to local governments' balance sheets.

The Ministry of Finance also announced the first-half fiscal income and expenditure statistics on Tuesday. By the end of June, the government's fiscal income was 10.78 trillion yuan, up 3.4 percent from a year earlier, slower than the pace of 3.8 percent in the first five months, as a result of the tax and fee reduction policy.

Tax income declined by 3.3 percent year-on-year in the second quarter, as the new value-added tax cut policy took effect in May. The overall tax income growth moderated to 0.9 percent in the first half, according to the ministry.

Given the slower income growth and the large gap of infrastructure financing, the government will rely more on funding through bonds. The special bond, which was introduced in August 2015, is a favorable instrument which can further leverage capital from other lenders, especially from the private sector, said experts.

The National Bureau of Statistics reported a rebound of fixed-asset investment by the end of June, up to 5.8 percent from 5.6 percent by May, although the overall GDP growth retreated to a nearly three-decade low of 6.2 percent in the second quarter.

To support the Ministry of Finance's bond issuance plan in the coming months, the central bank is expected to maintain relatively lower interest rates and ample liquidity, especially in the interbank market, "until it is clear that domestic growth is rebounding", said Lu Ting, chief economist at Nomura Securities.

Top
BACK TO THE TOP
English
Copyright 1995 - . All rights reserved. The content (including but not limited to text, photo, multimedia information, etc) published in this site belongs to China Daily Information Co (CDIC). Without written authorization from CDIC, such content shall not be republished or used in any form. Note: Browsers with 1024*768 or higher resolution are suggested for this site.
License for publishing multimedia online 0108263

Registration Number: 130349
FOLLOW US
CLOSE
 
主站蜘蛛池模板: 欧美三级欧美一级 | 香蕉香蕉国产片一级一级毛片 | 一区免费看 | 国产精品一区二区三区在线播放 | 天堂一区二区三区四区 | 欧美日韩一区二区中文字幕视频 | 米奇777四色精品人人爽 | 日本不卡一区二区 | 99视频网站| 在线不卡一区 | 五月天中文在线 | 北岛玲亚洲一区在线观看 | 龙珠z国语版在线观看 | 免费污视频 | 青草青草久热精品视频在线网站 | 青草久久免费视频 | 且试天下修久容 | www.aiqingdao| 奇米第四色网站 | 九九精品久久久久久噜噜 | 成人一级黄色大片 | 新超碰97| 在线观看国产免费高清不卡 | 99热久久这里只有精品6国产网 | 欧美在线另类 | 夜夜操免费视频 | 91精品国产露脸在线 | 久久久久在线观看 | 久99久视频| 亚洲精品国产成人无码区A片 | 国产极品福利视频在线观看 | 久草在线视频福利 | 九九99国产精品视频 | 亚洲小视频在线播放 | 亚洲精品国产自在久久出水 | 色狠狠色狠狠综合天天 | 贺鹏个人资料 | 请吃饭的姐姐 | 精久久久| 福利视频一区二区三区 | 天干夜天天夜天干天 |