China's special local govt bond issuance picks up

The issuance and use of China's special local government bonds have accelerated this year, which has been a key factor for the country's proactive fiscal policies.

Newly-issued special local government bonds hit 2.56 trillion yuan ($369.94 billion) as of Aug 16, up 51 percent from the same period last year, according to the Ministry of Finance (MOF).

The use of funds raised from the bonds has accelerated, with 2 trillion yuan having been spent by the end of July.

The MOF said it will properly handle the pace of issuance, ensure orderly and steady issuance of special bonds, and try to achieve this year's issuance target by the end of October.

The ministry vowed to optimize the investment of funds raised from the bond issuance, strictly manage negative lists, urge local governments to make good use of the bonds and improve the efficiency of fund usage.

China plans to issue 3.75 trillion yuan of special local government bonds this year, 1.6 trillion yuan more than last year.