China's June local govt bond issuance may reach 3-year high

BEIJING - The monthly value of local government bonds issued in June may reach a three-year high of nearly 900 billion yuan ($131 billion).

From June 1 to 23, the country issued a total of 594.2 billion yuan in local government bonds, according to financial information provider Wind Info.

There are still local government bonds worth more than 300 billion yuan planned to be issued in the final week of this month, which may bring the monthly total to almost 900 billion yuan.

As the country's measures to cut taxes and fees weigh on fiscal revenue, issuing local government bonds has become an important supplement to local fiscal revenue.

The record of monthly local government bond issuance came in April 2016, when the value reached 1.06 trillion yuan. The amount also exceeded 1 trillion yuan in June 2016.

This year's government work report made it clear that the country will make effective use of the role of local government bonds. China will issue 2.15 trillion yuan of special local government bonds this year, up by 800 billion yuan from last year.