China’s Slow Bond Sales Will Delay Infrastructure Boost
- Special local bond issuance much slower in 2021 than last year
- Local governments also hit by land controls, cutting revenue
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The slow pace of borrowing by local governments in China and curbs on the property market mean the economy will receive less of a boost this year from infrastructure investment than initially thought.
Cities and provinces will sell about 1.8 trillion yuan ($277 billion) in local government special bonds by the end of August, data compiled by Bloomberg show, amounting to 48% of their quota for the year.