Ahead of Schedule: Chinese Provinces Finalize Bond Issuance Plans for 2020

Chinese governments are pulling 2020 debt issuance plans into 2019 to boost GDP and credit growth.

财新：财政部提前摸底2020年地方债需求情况 明年1月起发行

Some cities and counties in Zhejiang, Jiangxi, Guangdong, Henan and other places have started the demand declaration for new local government bond projects in 2020 at the end of July and August, and are basically completed.

The progress of this work is obviously earlier than in previous years. Conventionally, before the preparation of the budget for the next year, local demand for new local bond projects will usually be required to be declared. In previous years, it is usually reported from the end of October to November. In comparison, this year is two or three months ahead of schedule.

A budget department of the Central Provincial Department of Finance told the Caixin reporter that last year did not ask for an early search. This year's work was much ahead of schedule.

The Standing Committee of the National People's Congress, which was held at the end of 2018, has authorized the State Council to issue some local government debt limits in the next year from 2019 to 2022. This allows local bond issuance to start in January without having to wait until March when the National People's Congress passes the budget report. The main purpose of this move is to speed up the use of local government bonds, and to play the role of government bond funds in stabilizing investment, expanding domestic demand, and supplementing shortcomings.