A worker counts Chinese currency (renminbi) at a bank in Linyi, eastern China’s Shandong province. (Photo/Xinhua)
As part of its efforts to promote investment and realize stable economic growth, the Chinese government has brought forward some investment plans originally set for 2025 to this year, while also increasing the scope of local government use of special bonds. The company announced that it will consider expansion. he said on Tuesday.
Zheng Shanjie, head of the National Development and Reform Commission, said the top economic regulator has earmarked a 100 billion yuan ($14.2 billion) investment plan in next year’s central government budget and plans to allocate another 100 billion yuan to major investment projects by the end of the year. He said that. This year in advance.
Zheng said at a press conference on Tuesday that the NDRC is looking more closely at ways to expand special bond support for local governments. This includes expanding the scope, scale and proportion of special bond funds used to finance projects, and concrete reform measures will be initiated as soon as possible.
Mr. Zheng said that the special bonds will be used to revitalize idle land in order to stabilize the real estate market, and will continue to issue ultra-long-term special sovereign bonds next year to help local governments avoid debt risks. It added that it will support the implementation of debt swaps.
“We will respond to the downward pressure on the economy, strengthen countercyclical adjustment of macro policies, and continue to exert greater strength in all areas,” Chung said.
The latest policy announcement aimed at promoting investment comes as downward pressure on the economy increases again, with growth in industrial production, retail sales, and fixed asset investment slowing in August. This was done after announcing a series of measures to
NDRC Deputy Director Liu Sushe said the commission will announce 200 billion yuan of investment plans and projects at the end of this month, which can be translated into physical work by the end of the year.
Meanwhile, Liu said that the measures being considered to improve the management of local government special bonds are expected to give local governments more autonomy in the examination process and allow special bonds to play a bigger role in investment. said.
Special bonds are invested in specific projects that can generate stable income to repay debt.
In the first three quarters, local governments issued 2.83 trillion yuan of this year’s special bond facility, which will be used for construction of projects worth 3.12 trillion yuan, according to official data.
Liu said the committee will urge local governments to issue the remaining 290 billion yuan of special bonds allocated this year by the end of October, and to ensure that construction of related projects begins as soon as possible.
Wei Qijia, director of the Industrial Economics Research Office of the Economic Forecasting Bureau of the National Information Center, part of the NDRC, told China Daily that the policy focus on special bonds is to make best use of and maximize bond income. Ta. Economic boosting effect.
“Meanwhile, the acceleration of 200 billion yuan of investment reflects policymakers’ emphasis on taking decisive action and improving policy efficiency,” Wei said, adding that it is another policy focus to pay attention to. It added that this is a measure to facilitate local government debt exchange. This is to maintain quality development and ensure financial stability.
Ying Mingyue contributed to this story.