Guanjian | The 500 billion special bond balance limit has been "opened", and the issuance will be completed before the end of October
The Paper reporter Chen Peizhen
In August, the National Standing Committee proposed two economic stimulus measures. Among them, 300 billion yuan of policy development financial instruments have been put into use, and the 500 billion yuan special bond balance limit has been "opened" a few days ago.
300 billion yuan of policy development financial instruments are invested by 3 policy banks: On September 28, the Export-Import Bank of China announced that the task of investing 50 billion yuan in the Jinyin Infrastructure Fund has been completed, supporting a total of 106 major projects; As for the Agricultural Development Bank, as of September 17, the second phase of the Agricultural Development Infrastructure Fund had invested in 732 projects with an amount of 100 billion yuan; as of September 20, the second phase of the China Development Bank Infrastructure Investment Fund 150 billion yuan has been invested to support 421 projects.
On September 7, Premier Li Keqiang presided over an executive meeting of the State Council and pointed out that infrastructure and other issues are related to development and people's livelihood, and special debts should continue to be used to make up for shortcomings.
According to the law, the limit of more than 500 billion yuan of special bonds accumulated by local governments since 2019 will be revitalized, and the issuance will be completed by the end of October, and priority will be given to supporting projects under construction.
The issuance of special bonds with special debt balance limit has been "opened" in Liaoning
According to the information disclosed by the China Bond Information Network, on September 27, the Liaoning Provincial Government Special Bonds (16th to 20th tranches) completed the issuance bidding, of which the special bonds invested in infrastructure construction amounted to 6.237 billion yuan, and the special bonds invested in shantytown reforms The debt limit is 463 million yuan, totaling 6.7 billion yuan.
This marks the realization of the "gateway" for the local government to use the special debt balance limit to issue special bonds.
According to the Liaoning Daily on September 30, the Financial and Economic Committee of the Liaoning Provincial People's Congress made a report on the results of the review of the "Liaoning Provincial People's Government's Proposal for Proposal for the Deliberation of the 2022 Liaoning Provincial Special Debt Limit Arrangement and the Provincial Budget Adjustment Plan (Draft)" It shows that the Ministry of Finance has issued a government debt limit of 42 billion yuan for Liaoning Province in 2022, which has been approved by the sixth meeting of the 13th Provincial People's Congress and the 34th meeting of the Standing Committee of the 13th Provincial People's Congress, and has been arranged for issuance and use in all regions.
The Ministry of Finance has set a special debt limit of 7.9 billion yuan for Liaoning Province this time, of which Dalian City is 1.2 billion yuan, and Dalian City issues bonds and adjusts its budget according to law; the provincial level and 13 cities are 6.7 billion yuan.
In order to implement the "Opinions on Strengthening the Review and Supervision of Government Debt by Local People's Congresses" issued by the General Office of the Central Committee of the Communist Party of China, further strengthen budget management, and give full play to the benefits of bond funds, the Financial and Economic Committee of the Liaoning Provincial People's Congress recommends that we should give full play to the pull of government special bonds. Effective investment role and capital leveraging role help stabilize the overall economic market; improve the management system of special bond projects, strictly check the investment fields and project compliance, maturity, balance of financing income, etc., and improve the quality of project reserves. Ensure that the approval and issuance and use work are started in a timely manner after the allocation of the debt limit; carry out full-life-cycle performance management for special bond projects, strengthen the penetrating supervision of the management and use of special bond funds, effectively improve the efficiency of fund use, and effectively prevent government debts risk, etc.
At the same time, in accordance with the State Council's approval of Liaoning Province's plan to resolve financial risks and the matters agreed upon at the 65th plenary meeting of the Financial Committee of the State Council, it was agreed that Liaoning Province would issue 60 billion yuan of special bonds to supplement relevant bank capital.
The Liaoning Provincial People's Government proposed to arrange all 13 cities.
What is the special bond balance limit? Where to cast?
On September 5, at the regular briefing on State Council policies held by the State Council Information Office, Assistant Minister of Finance Owen Han responded on the limit of 500 billion yuan of special debt balances.
What is the special bond balance limit?
Owenhan said that according to the current policy regulations, the balance of local government debt is subject to limit management, and the total limit of local government debt is determined by the State Council based on the national macroeconomic situation and other factors, and reported to the National People's Congress for approval.
The special debt balance limit is the part of the special debt balance that is less than the limit. It is mainly to control the debt risk level by strengthening the management of fiscal revenue and expenditure, arranging fiscal funds to repay the due special bonds, reducing the special debt balance, and forming a corresponding limit space.
Talking about where more than 500 billion yuan will be invested, Owenhan said that the general consideration is to focus on supporting transportation infrastructure, energy, agriculture, forestry and water conservancy, ecological environmental protection, social undertakings, urban and rural cold chain and other logistics infrastructure through the issuance of new special bonds. , municipal and industrial park infrastructure, major national strategic projects, affordable housing projects, as well as new energy projects and new infrastructure projects.
At the same time, it will actively study and appropriately expand the investment fields of special bond funds and expand the scope of special bonds used as project capital, so as to better play the role of special bonds in stimulating effective investment.
How much will the use of the special bond balance limit of more than 500 billion yuan stimulate investment?
Regarding the "utilization of the special debt balance limit of more than 500 billion yuan in accordance with the law" mentioned at the National Standing Committee, the agency believes that it will have a stimulating effect on infrastructure investment, GDP, and social financing scale.
Wang Qing, chief macro analyst of Dongfang Jincheng, said in an interview with The Paper earlier that "using the balance of more than 500 billion yuan of special bonds in accordance with the law" means that the 3.65 trillion new local government special debt quota in June this year "basically issued." After that, we will arrange to issue an additional 500 billion yuan of special bonds, mainly for infrastructure.
As a result, there is no suspense that infrastructure investment will accelerate to more than double digits in the second half of the year.
It judges that the year-on-year growth rate of infrastructure investment is expected to reach about 10%, which will be significantly higher than last year's growth level of 0.4%, which will drive up this year's GDP growth rate by about 1 percentage point, thus playing a mainstay role in the current round of stable growth. .
The fixed income research team of Haitong Securities believes that the policy goal is to increase effective investment to drive consumption and cope with insufficient loan demand.
By continuously releasing the reform of interest rate quoted in the loan market and the transmission effect, the cost of corporate financing and personal consumption credit will be reduced.