China to improve local govt bonds management

In this undated photo, a staff member of China Construction Bank counts the Chinese yuan at a branch in Nantong, Jiangsu province. (XU JINBAI / FOR CHINA DAILY)

BEIJING – China will improve the management of special-purpose local government bonds, a State Council executive meeting chaired by Premier Li Keqiang decided on Wednesday.

The country will optimize the use of funds and strengthen their supervision, the meeting said.

Over the past few years, China has seen progress in local government bond management, with declines in the level of hidden debt and overall leverage, according to the meeting.

The special-purpose government bonds have played an important role in supporting major projects this year, the meeting said, urging efforts to defuse risks while coordinating policies on bond management for this year and the next.

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Efforts should be made to better leverage the role of special-purpose government bonds in driving social capital to expand effective investment and consumption, the meeting said.