Ministry of Finance: To revitalize local government's special debt limit stock, better play the role of funds leveraging

On September 5, the State Council held a routine blower of the State Council. At the meeting, the assistant Minister of Finance said at the meeting that recently, the State Council has deployed 19 continuation policies and measures for a stability of the economy. The financial department will revitalize the special debt limit of the local government in accordance with the law and better play the role of special bond funds.

According to data from the Ministry of Finance, as of the end of August, a total of 3.52 trillion yuan of special bonds has been issued, and the amount used for project construction has been basically issued, which is greatly advanced from previous year. The scope of support and better play the role of special bonds to expand effective investment.

The Executive Meeting of the State Council held on August 24 stated that "more than 500 billion yuan in special debt deposit limits in accordance with the law, and the issuance of it by the end of October."

"The Ministry of Finance intends to guide the local government in accordance with the law to make more than 500 billion yuan of special debt deposit limits, issue new special bonds to support major project construction, support conditions for provinces with conditions to complete the expected goals of economic and social development, and consolidate the trend of recovering the economy." Han said.

Talking about where more than 500 billion yuan focused on investment, Irving said that the general consideration is to issue new special bonds, focusing on supporting transportation infrastructure, energy, agricultural and forestry water conservancy, ecological environmental protection, social undertakings, urban and rural cold chains and other logistics infrastructure infrastructure infrastructures and other logistics infrastructure infrastructure , Municipal and Industrial Park infrastructure, major national strategic projects, affordable housing projects, and the construction of new energy projects and new infrastructure projects. At the same time, it will actively study the scope of appropriate expansion of special bond funds to the area and expand the use of special bonds as project capital, and better play the role of special bonds to drive effective investment.

Yang Yinkai, deputy secretary -general of the National Development and Reform Commission, said that in terms of the limited amount of local government special debt, the National Development and Reform Commission has organized local reports and screening for a new batch of preparation projects this year. The Ministry of Finance, the People's Bank of China and the Audit Office were copied. In addition, there are some projects that have not been arranged in the list of preparation projects this year, which can generally meet the issuance needs of more than 500 billion yuan limit stock.

"For places with insufficient reserves of individual projects, the National Development and Reform Commission will timely organize a batch of projects. On this basis, we require localities to combine the severity and eagerness of the project and the preliminary work conditions, and to select the project arrangement bonds from the preparation project list. "Yang Yinkai said.

Zhang Yiqun, deputy chairman of the Performance Management Commission of the Chinese Finance Society, told reporters of the Securities Daily that the investment in special bonds has multiple characteristics: First, the investment scope is wider, which is conducive to the local and faster raising project funds; Second, it has the characteristics of stimulating the vitality of the market, which is conducive to the optimization layout and structural adjustment of major projects, and better exert the physical amount conversion effect of special bond funds; third, the preparation and declaration of bond projects are more flexible. To regulate the better docking of the project with funds; the fourth is that the close interaction between the central government and the local area will help improve the benefits of bond funds.

Li Mingjin, a senior investment consultant of Jufeng Investment Consulting, told the Securities Daily that since this year, the pace of issuance of special bonds has been significantly ahead, and has played an important role of special debt to drive effective investment and stabilize the macroeconomic economy. In the next step, we must strive to form a physical workload as soon as possible to help stabilize the economic market.

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