The scale of 124.8 billion yuan in new local bonds issued in July by nearly 70 %

In the first half of the year, the amount of new bonds (hereinafter referred to as new debt) of local governments was basically issued, which reduced the scale of new debt -increase issuance in the second half of the year.

According to public data, a total of 124.8 billion new local government bonds issued a local government in July, a year -on -year decrease of 69%.

In order to hedge the downward pressure of the economy this year, the issuance rhythm of new debt (limit) of 4.37 trillion yuan throughout the year was significantly advanced, and basically it was issued in the first half of the year. As of the end of July, the new local debt -increased issuance of the country was issued about 4.15 trillion yuan, and the issuance progress was about 95%.

If you exclude 200 billion yuan to supplement Special Special Capital Bonds, this year's actual new debt issuance progress is close to 99%. This means that this year's new debt is basically used up.

At present, new special bonds are mainly added to new bonds. This year, the aforementioned bonds used to supplement small and medium banks were removed. The remaining 3.45 trillion yuan of new special bonds for the project was basically issued. The State Council demanded that the huge amount of bond funds will be used by the end of August. Most provinces have issued a post to reiterate this request to give play to the effective economic effects of bond funds to drive effective investment.

Song Qichao, a first -level inspector of the Budget Department of the Ministry of Finance, recently publicly stated that the amount of new special bonds used for project construction in 2022 was basically issued, which was greatly advanced from previous year, fully reflecting the requirements of active fiscal policies. In the first half of the year, the special debt leveraged the investment effect obvious.

"The next step is to urge localities to allocate special bond funds in a timely manner, compact the responsibilities of the project unit, and promote the physical workload of special bonds as soon as possible." Song Qichao said.

Several analysts told the First Finance that the special bonds were basically issued in the first half of this year, and supported major infrastructure project investment. In the second half of the year, the "empty window period" of new special debt issuance was entered. Difficulties such as decreased support for infrastructure investment need to introduce the corresponding incremental policy to make up for the funding gap.

In fact, this incremental policy has gradually become clear.

The State Council recently decided to raise 300 billion yuan in financial bonds and other financial bonds to supplement the capital of major projects or bridge the capital of special debt projects. In addition, the credit bank's credit quota is also increased by 800 billion yuan to support infrastructure construction.

On July 28, the Political Bureau of the Central Committee of the Communist Party of China held a meeting to emphasize that the use of special bond funds for local governments and supported local governments to support the use of special debt limits. A number of experts analyzed the First Financial Analysis, currently there are about 1.5 trillion yuan of existing bond issuance in the special bond limit. It is expected that this amount will make full use of this amount to support infrastructure investment.

According to the latest data from the National Bureau of Statistics, from January to June, infrastructure investment (excluding power) increased by 7.1%year -on -year. Many analysts predict that the growth rate of infrastructure investment in the third quarter will be faster, and the annual infrastructure investment is expected to reach 8%to 10%high to exert a stable economic effect. This will also be the first time that the growth rate of infrastructure investment has continued to decline since 2018.

Original title: In July, the scale of new debt -increased bonds dropped by nearly 70 %. What was the reason?

Responsible editor: Shi Jian | Audit: Li Zhen | Director: Wan Junwei

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