Local Government Bond Issuance Hits Three-Year High in Early 2024

[Local Government Bond Issuance in Full Swing]

Local government bond issuance has achieved a "good start." Data shows that in the first two months of this year, a total of 1,863.296 billion yuan of local government bonds were issued nationwide, marking the highest level in nearly three years (2024 YoY: 944.411 billion yuan; 2023: 1,219.631 billion yuan), with a significant increase YoY. "Since the beginning of this year, thanks to the pilot program of 'self-review and self-issuance' for special bond projects, which has improved issuance efficiency, and the accelerated efforts by local governments to replace existing hidden debt, the issuance of local government bonds, especially new special bonds and refinancing special bonds, has significantly accelerated," said Bin Wen, Chief Economist at China Minsheng Bank. This will help expand effective investment, alleviate local fiscal pressure, and more.