China to speed up second-half special local government bond issuance to meet demand

BEIJING (Reuters) – China’s special local government bond issuance will accelerate in the second half of this year, and the finance ministry will focus the “proactive” fiscal policy on cutting taxes and fees, the vice-finance minister said on Thursday.

Liu Wei said such a fiscal stance will boost jobs and resolve financing difficulties, and he pledged support to small and medium-sized companies.

China issued more than 300 billion yuan ($44.27 billion)worth of special local government bonds in the first half of the year, a pace which Liu Wei described as “slow”.

At a briefing in Beijing, he stressed the need to meet local funding demand and ensure financing for government projects under construction. 

Liu also called for better policy coordination among government agencies.

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