The issuance of February local government bonds will kick off today, and the total amount planned to be issued this month adds up to about 300 billion yuan (US$44.39 billion), Securities Daily reported.
Local government bonds issued in January hit 417.97 billion yuan, while that in February will reach 295.86 billion yuan, according to documents disclosed in various provinces.
Analysts think as provinces are issuing local government bonds at a larger scale and at a faster pace, local infrastructure projects will gain stronger support.
This could play an important role in stabilizing investment and promoting consumption, and alleviate the downward pressure on economic growth in the short-term, the newspaper said.
It is also necessary to make good use of new local government bonds, including supporting projects under construction and to clean the arrears of government projects first, said He Lei, Deputy Director of the Budget Department at the Ministry of Finance.
Meanwhile, it is also urgent to start a batch of major projects in the areas of transportation, water conservancy and environmental protection.
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