China to issue 3.75 trillion yuan local govt special-purpose bonds this year

SHANGHAI, May 22 (SMM) – China plans to issue 3.75 trillion yuan worth of special-purpose local government bonds this year, 1.6 trillion yuan higher than last year, Chinese Premier Li Keqiang said in the work report delivered on Friday.

Li noted that the central government budget includes 600 billion yuan for investment.

With the aim of expanding effective investment, priority will be given to new infrastructure, new urbanisation and major projects.

The construction of new infrastructure including developing a new generation of data communication network, widening the application of 5G, building more charging piles, promoting new energy vehicles, stimulating new consumer demand and boosting industrial upgrading.

The renovation of 39,000 old urban residential communities will begin this year, supporting the installation of elevators in residential buildings and the development of community services.

China will also intensify its efforts to develop major transportation and water conservancy projects and national railway development capital will be increased by 100 billion yuan.