Unveiling the veil of special treasury bonds: 700 billion yuan of capital available for infrastructure investment

category:Finance
 Unveiling the veil of special treasury bonds: 700 billion yuan of capital available for infrastructure investment


The remaining 300 billion of the funds are transferred to the general public budget after arrival, and are transferred to counties and cities through special transfer payment mechanism. They are mainly used for protecting employment, protecting basic livelihood and protecting market players. The central finance is mainly responsible for the repayment of this part of the funds.

According to the requirements of the Ministry of finance, 1 trillion special treasury bonds will be issued in a market-oriented way and will be issued by the end of July. This has had a certain impact on the fund. In the near future, the overnight fund interest rate has broken through 2% again, and the market is also paying attention to the relevant operation of the central bank.

Two main uses

A novel coronavirus pneumonia issued in late May was introduced to the National Peoples Congress for consideration. The special treasury bonds are designed to meet the impact of the new crown pneumonia epidemic. The special treasury bonds issued by the central government are not included in the fiscal deficit, but are included in the national debt balance limit. They are transferred to the local areas, mainly for public health and other infrastructure construction and related expenses for the epidemic.

The budget report also pointed out that the scale of issuance of special anti epidemic bonds was 1 trillion yuan, with a 10-year period as the main period and coordinated with the central government bonds. The interest of the special national debt for epidemic resistance shall be borne in full by the central finance, the principal shall be repaid by the central finance by 300 billion yuan, and the local finance by 700 billion yuan. The revenue and expenditure of the special national debt for epidemic resistance shall be included in the budget management of government funds.

In the near future, the use and issuance of special treasury bonds have been further clarified. The reporter learned that the 700 billion yuan of special treasury bonds was transferred to local governments mainly for infrastructure projects, and invested in the construction of public health and major epidemic prevention and treatment system, the construction of emergency material support system, the reconstruction of old urban communities, sewage and garbage treatment, water supply, power supply and gas supply and other fields. According to the budget statement, 700 billion funds for infrastructure construction are transferred to counties and cities through government funds.

The reporter also learned that the special national debt fund for infrastructure expenditure can be used as project capital fund. The application materials of a province obtained by the reporter also show that infrastructure projects need to be included in the national and provincial key project databases. In addition, the project should have certain benefits.

In other words, the local government debt ratio (local government debt balance / comprehensive financial resources) will reach 94% by the end of 2020. If another 700 billion special bonds are issued, the local government debt ratio will approach the warning line of 100%.

The remaining 300 billion yuan of special national debt is used for anti epidemic related expenditures, mainly to protect employment, basic peoples livelihood, and market entities, including supporting the reduction of enterprise rent, business guarantee loan discount, implementation of the policy of helping enterprises to stabilize their posts, and ensuring the basic life of the people in need. According to the declaration requirements of the above-mentioned provinces, the anti epidemic related expenditures shall be prepared in accordance with the principle of seeking truth from facts, and shall be used up before the end of the year.

Reporters learned that the above-mentioned 300 billion funds into account after the transfer of the general public budget, through special transfer payment mechanism to the counties and cities, of which Hubei province has a relatively large amount.

Color said, on the whole, anti epidemic special treasury bonds are relatively loose. Because the funds go directly to the counties and cities, the whole pace is fast, that is, the financial investment speed is faster after the money is raised.

Issue with dispute reduction

On June 18, the Ministry of Finance successfully issued RMB 50 billion five-year and RMB 50 billion seven-year special anti epidemic bonds, with coupon rates of 2.41% and 2.71% respectively, 13 basis points lower than the average yield of the secondary market in the previous five trading days. On June 23, the Ministry of finance will issue 70 billion yuan of 10-year special treasury bonds.

A trader from an agricultural commercial bank in East China said that the 1 trillion special treasury bonds will not only be fully market-oriented bidding, but will be fully issued in about a month and a half, and the market will bear some pressure. If there is no liquidity support on the policy side, the bond market may face greater adjustment pressure, and the market expects the central bank to take action as soon as possible.

Due to the issuance of special treasury bonds and the cross half year factors, the fund has been significantly tightened in the near future. According to wind data, dr001 on June 23 was at 2.13%, a new high since February 5. According to the arrangement of the Ministry of finance, all the special treasury bonds need to be issued by the end of July, which means that the monthly issuance scale of special treasury bonds in July will reach 83 billion.

Wu Zhiwu, a researcher at the research and Development Department of China Securities PENGYUAN rating, said that although the current economic situation has gradually improved, it still needs the support of loose monetary policy. If the anti epidemic special national debt issuance superposed with the improvement of fundamentals causes the market interest rate to fluctuate greatly, it will have a certain crowding out effect.

In case of tight liquidity, the central bank will adjust liquidity through reverse repo in the short term and re loan in the long term. Color representation. Prior to that, the central bank restarted 14 days of reverse repo on June 18, aiming to maintain a stable liquidity at the end of half a year.

China finance, a magazine affiliated to the Ministry of finance, reported recently that in order to ensure the smooth and stable issuance of special anti-epidemic treasury bonds, we will fully consider the existing market bearing capacity, strengthen the overall planning with the issuance of general government bonds, appropriately reduce the issuance of general treasury bonds and local bonds in 6 and July, and make market space for the issuance of special treasury bonds Volume, stabilize market expectations. At the same time, the Ministry of finance will strengthen coordination and cooperation with the peoples Bank of China and other departments to jointly create a good market environment for the issuance of special treasury bonds.

According to wind data, the peak issue size of general government bonds and local bonds in a single month is May this year, and the total issue of government bonds in that month is about 2 trillion, including 1.3 trillion of local government bonds. At present, the monthly issuance scale of special treasury bonds in July is expected to be 830 billion. If we consider appropriately reducing the issuance of general treasury bonds and local bonds in June and July, the issuance scale of government bonds in July will be lower than that in May, and the impact on the market will be less than that in May.

(author: Yang Zhijin editor: Zhang Xing)