China’s local debt thunderstorms continue, but the issuance of public debt as usual, especially after the “two sessions”, local governments began to enlarge the absolute, statistics pointed out that the scale of local debt issuance in March reached 477 billion yuan, compared with the previous month increased by seven times as much, is expected to usher in a blowout period in April, the scale of debt issuance will be the first peak of the year .
Photo shows Tibetan herders’ homes in a resettlement village built by the local government in Qinghai
Reuters reported that China’s funding situation in March continued the easing trend in February, causing no disturbance to local bond issuance. According to statistics, China’s local bond issuance scale in March exceeded 477 billion yuan, more than 7 times higher than the previous month, hitting a new high since September last year, which is probably due to the late start of local bonds this year and the concentrated release of allocation power.
According to the report, this year’s “early batch” of local debt is absent, the new special debt is only about 100 billion yuan less than last year, is expected to start the second quarter of local debt issuance will enter the blowout period, in April, I am afraid to usher in the first peak of debt issuance.
The report pointed out that last year was China’s local debt issuance scale reached 6.44 trillion yuan, a record, fiscal policy has been significantly relaxed, the deficit rate set at more than 3.6%, resulting in a sharp expansion of the debt scale, the debt rate is close to the lower limit of the warning range.
By province, Shandong Province ranked first in China with 450.2 billion RMB in local debt issuance last year, while Jiangsu and Guangdong ranked second and third. In terms of local debt to GDP ratio, Reuters statistics, last year, Qinghai’s local debt issuance scale to GDP ratio was the highest, reaching 17%; Guangdong Province was the lowest, only 3.7%.
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