China’s local authorities, on Friday raised a total of 4.36 trillion yuan (or about 622.9 billion U.S. dollars) through bond issuance in 2019, up from the 4.17 trillion yuan a year ago.
According to the Ministry of Finance (MOF), the average issuance interest rate stood at 3.47 per cent for the year, 42 basis points lower year on year.
China has accelerated its bond issuance and utilization with the annual target for new bond issuance being achieved by the end of September.
MOF said the issuing channels were more diversified as China started to allow local government bond issuances over the counter of commercial banks in March.
China has eased the restrictions on infrastructure construction financing, allowing local governments to use part of special-purpose bonds as project capital to support major national infrastructure projects to spur the economy further.
