According to the previous data of the Ministry of Finance, after the peak of local bond issuance in June, local bond issuance in July fell slightly compared with June. In July, local governments issued 555.9 billion yuan of local government bonds, of which 376.5 billion yuan were added. In June, local governments issued 899.6 billion yuan of local government bonds, including 717 billion yuan of new local government bonds, a new monthly issuance scale in the year.
Fu Yifu, a senior researcher at the Suning Institute of Finance, pointed out that in the first half of this year, the issuance rate of local bonds was significantly faster than in previous years, releasing a considerable amount of supply pressure ahead of time. Against the background of the planned annual issuance scale, the slowdown of issuance rate in July was also a normal phenomenon.
In April of this year, the Ministry of Finance issued relevant documents pointing out that all localities should strive to complete the issuance of new bonds by the end of September.
Driven by the policy, the pre-issuance of local bonds is obvious this year. The issuance rate of new bonds in the first half of this year increased by 55.2 percentage points compared with 15.5% in the same period last year. By the end of July, 3393.1 billion yuan of local government bonds had been issued, of which 2552.9 billion yuan had been added, accounting for 83% of the new local government debt limit.
Yang Zhiyong, a researcher at the Institute of Financial and Economic Strategies, Chinese Academy of Social Sciences, pointed out to the reporters of Securities Daily that the preferred rhythm of local debt issuance is a manifestation of the positive fiscal policy. Money spent in January is not the same as that spent in December, he said, citing the fact that if it was released at the end of the year, the effect on infrastructure might not be apparent until the next year. ?
Fufu analysis, through issuing local government bonds to finance, on the basis of alleviating the pressure of local fiscal expenditure, can also help local governments to start new investment initiatives, and then provide more support for the orderly development of local economy. On the other hand, the transmission of fiscal policy is time-lagging. In order to support the shortcomings of infrastructure construction with more active fiscal policy and achieve early results, and to start many major infrastructure projects, capital investment is needed to serve the early implementation of infrastructure investment, leading to the early issuance of local debt in the first half of the year.
Source: Liable Editor of Securities Daily: Yang Qian_NF4425