City will sell bonds to finance projects
By Feng Jianmin |
July 28, 2012, Saturday
|
Print Edition
Print Edition
SHANGHAI will sell 8.9 billion yuan (US$1.4 billion) in local government bonds this year to support its affordable housing program and urban construction, the Shanghai Finance Bureau said yesterday.
Half of the amount features a five-year term while the rest are for seven years, according to an official statement.
Last year, a total of 7.1 billion yuan in three-year and five-year bonds were sold at an annual yield of 3.1 and 3.3 percent. The bonds were well received by the market.
After this year's bond issuance, the budget for building affordable homes will rise from 2.2 billion yuan to 3.1 billion yuan and the budget for public infrastructure will rise from 34.85 billion yuan to 36.85 billion yuan, the city government said.
Additionally, it will lend a further 6 billion yuan to district governments.
Shanghai and Shenzhen are the only cities on the Chinese mainland allowed to sell bonds. Zhejiang and Guangdong are the only provinces allowed to sell government bonds.
Other local governments should raise funds through financing vehicles or apply to the state finance ministry to issue bonds on their behalf.
The Ministry of Finance has released a plan to issue a total of 135.8 billion yuan of bonds on behalf of local governments.
The Standing Committee of the National People's Congress in June vetoed a proposal that would allow local governments to issue bonds on their own to prevent excessive fundraising.
Half of the amount features a five-year term while the rest are for seven years, according to an official statement.
Last year, a total of 7.1 billion yuan in three-year and five-year bonds were sold at an annual yield of 3.1 and 3.3 percent. The bonds were well received by the market.
After this year's bond issuance, the budget for building affordable homes will rise from 2.2 billion yuan to 3.1 billion yuan and the budget for public infrastructure will rise from 34.85 billion yuan to 36.85 billion yuan, the city government said.
Additionally, it will lend a further 6 billion yuan to district governments.
Shanghai and Shenzhen are the only cities on the Chinese mainland allowed to sell bonds. Zhejiang and Guangdong are the only provinces allowed to sell government bonds.
Other local governments should raise funds through financing vehicles or apply to the state finance ministry to issue bonds on their behalf.
The Ministry of Finance has released a plan to issue a total of 135.8 billion yuan of bonds on behalf of local governments.
The Standing Committee of the National People's Congress in June vetoed a proposal that would allow local governments to issue bonds on their own to prevent excessive fundraising.
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