China to speed up bond issuance after national meeting on stabilising investment: analysts
The fixed-income securities are to be used to fund national infrastructure and construction ventures to boost the economy
After China’s top economic planner convened a rare national meeting to promote investments, analysts say that authorities are set to speed up bond issuance to fund government-led projects to keep growth on track for the rest of the year.
The National Development and Reform Commission (NDRC) held a meeting on Friday with many of China’s key investment-related central government agencies, including the ministers of industry and information technology, housing and urban-rural development, and transport, alongside senior leadership from water resources and energy.
Officials pledged to “maximise investment potential” in areas such as technological innovation, industrial upgrading and urban renewal, and accelerate the deployment of the policy-based financing tool and local government special bonds for major construction projects, according to a readout by state news agency Xinhua.
“The current policy focus is clearly on boosting investment instead of consumption, more so than at any time since the global financial crisis,” said Song Yu, chief China economist at UBS Securities, in a report on Monday.