More Debt for Infrastructure in China

Keep cutting those yuan targets.

Caixin: China Relaxes Funding Restriction on Key Projects

Local governments will be allowed to use proceeds from special-purpose bond issuance as project capital for certain infrastructure investments, according to a document issued Monday by the central government. The document also encourages local authorities and financial institutions to expand funding sources for major projects through market-based financing methods as long as they follow the rules.

China previously prohibited local governments from using any borrowed money as project capital put up by investors for initial investment in infrastructure to curb local debt surges.