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


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.

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 fact, at the end of April, we have reserved special national debt projects according to the requirements of our superiors. At that time, we applied in the form of new central investment (special national debt), and in the near future, we are improving the early materials of the projects. The funds applied for special treasury bond projects should be used before the end of the year, and the physical workload should be formed in time, said a person from the investment section of the development and Reform Commission of a city in the central province

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.

Some market participants believe that the above special treasury bonds for infrastructure investment are similar to special bonds. Special bonds are required to be invested in infrastructure projects with certain income, but the income is required to exceed the financing, and some special bonds can also be used as project capital.

Color, chief economist of Founder Securities, said that the special anti epidemic bonds received by local governments are not included in the total implicit debts of local governments, the balance of local government debts and the risk indicators of local governments. According to the chief fixed income analyst of a securities firm in Shanghai, the reason why the 700 billion fund is not raised through special bonds but special bonds is mainly to avoid the surge of local debt ratio.

According to the Ministry of finance, the balance of local debts by the end of May was 24.2 trillion yuan. If the rest of the new special bonds and general bonds are issued, the balance of local bonds will reach about 26 trillion at the end of the year. According to the budget report, the general public budget revenue of local governments in 2020 is estimated to be 20 trillion (including central transfer payment and last years carry over), the government fund revenue is estimated to be 7.7 trillion, and the comprehensive financial resources are estimated to be 27.7 trillion.

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%.

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.

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.

Color believes that the central bank will not support the issuance of special anti epidemic treasury bonds by reducing the standard. First, the Ministry of finance will reduce the issuance scale of general national bonds and local bonds, so as to make way for the issuance of special national bonds against the epidemic. Second, the turnover process of special treasury bonds is very fast. Although the central government issues special treasury bonds to recover liquidity from the banking system, the central government quickly transfers it to the local government to deposit the relevant funds in the bank, and the liquidity flows back to the banking system.

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) four months after the outbreak, Ma Huateng is still the richest man in China, Huang Zhengs wealth is growing fastest. The national development and Reform Commission issued a central budget of 3.5 billion yuan in two batches to support Hainan free trade ports national network information office to interview 10 online live platforms such as Huya and douyu. Source: responsible editor of economic report in the 21st century: Wang Xiaowu_ NF

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)