This week, local governments in China began offering their 2019 bonds, earlier than in the previous years when the issuance had to wait until quotas were announced in March.
At a press conference held recently, a senior official of the Ministry of Finance said the ministry had already notified local governments of their 2019 bond issuance quotas.
In 2019, they will be allowed to issue bonds worth 1.39 trillion yuan (204.4 billion U.S. dollars), including 580 billion yuan (85.3 billion U.S. dollars) of general bonds and 810 billion yuan (119.12 billion U.S. dollars) of special bonds.
On Monday, northwest China's Xinjiang Uygur Autonomous Region launched the country's first general bonds for 2019. A day later, Henan Province in central China began this year's first offer of special bonds.
By the end of this week, 129.56 billion yuan (19.06 billion U.S. dollars) of local government bonds will be issued, which will consist of 55.06 billion yuan (8.1 billion U.S. dollars) of general bonds and 74.5 billion yuan (10.96 billion U.S. dollars) of special bonds, according to a forecast of Wang Yuanhui, an analyst of China Chengxin International Credit Rating Co., Ltd.
Out of the above special bonds, new debts would stand at about 63.85 billion yuan (9.41 billion U.S. dollars), to be used to develop infrastructure and stabilize investments, said Wang.
By Jan. 28, local government bonds worth 184.96 billion yuan (27.76 billion U.S. dollars) will be offered, according to information already disclosed.
"At this pace, the chances are that over 240 billion yuan (35.3 billion U.S. dollars) of local government bonds will be issued by the end of January," said Wang.
This year's quotas for local government bonds, coming at an earlier date and in a larger sum, will help fund projects in progress, stabilize infrastructure investments and meet the financing needs of major projects, said Wang.