The 6-trillion-yuan worth of debt would be raised over three years including 2024, said the sources, adding the proceeds would primarily be used to help local governments address off-the-books debt risks.
Local governments would be allowed to raise that amount on top of their usual annual issuance quota, which mainly funds infrastructure spending.
The quota stood at 3.9 trillion yuan this year and 3.8 trillion in 2023.
The latest move is aimed at enhancing local governments' ability to manage land supply, and alleviate liquidity and debt pressures on both local governments and property developers, they added.
Special-purpose bonds are a tool for off-budget debt financing used by Chinese local governments, with the proceeds raised typically earmarked for specific policy objectives, such as infrastructure expenditures.
Persons:
Stringer, Donald Trump, it's, Tommy Xie, Trump, Kamala Harris
Organizations:
Afp, Getty, National People's Congress, Reuters, Information, NPC, Greater, Greater China Research, OCBC Bank, U.S, Trump, Republican, Democratic
Locations:
Chongqing, China, Beijing, Greater China