China's one hundred yuan. Photo: iStock
China's digital currency is taking shape. Photo: iStock

China will add a total 1.39 trillion yuan (US$202.07 billion) of local debt in 2019, including 580 billion yuan in local government bonds and 810 billion yuan in special local government bonds, Xinhua news agency reported.

The State Council is now allowed to release the quota of local debt issuance much earlier than before. Previously, the quota was normally unveiled around May, which led to heavy local government bond issuance during the second half of the year.

The State Council has been given the authority to announce the quota of new local government debts for the year ahead in advance from 2019 to 2022. However, the quota ordered in advance should not exceed 60% of the total annual quota.

Amid the economic downward pressure, this will help local governments make timely arrangements for funds and their prospective projects.

It is necessary to improve the efficiency of the use of these funds, as it plays an important role in stabilizing investment, expanding domestic demand and strengthening the weak links in the economy, the report said.