Recently, multiple provinces and cities such as Shaanxi, Guangdong, and Shanghai have disclosed plans for the issuance of special bonds in August. Industry insiders expect that as an important lever for fiscal development in the second half of the year, the issuance of special bonds will accelerate, and it is expected to usher in a supply peak starting from August, providing support for infrastructure investment demand in the second half of the year. Entering the Green Aluminum Innovation Industrial Park located in Yanshan County, Yunnan Province, the electrolytic aluminum production equipment in more than ten factories is operating in an orderly manner. The construction site of newly settled enterprises is lined with tower cranes, and workers are busy decorating factories and installing equipment. In order to accelerate the improvement of the park's infrastructure, Yanshan County has applied for four local government special bond fund projects in recent years, with a total of 4.72 billion yuan of local government special bonds. The project construction has been smoothly promoted, and over 6400 acres of land have been leveled and handed over to enterprises in the park for use on schedule. After the completion of the green aluminum industry chain in the park, it is expected to achieve an annual output value of 150 billion yuan, "the relevant person in charge of the park told reporters. Special bonds are an important source of funding for local project construction. According to data from the Ministry of Finance, in the first half of the year, 2172.1 billion yuan of special bonds were issued by various regions for project construction, with a total of nearly 20000 special bond projects supported in the first half of the year. Among them, 727.5 billion yuan was used for municipal construction and industrial park infrastructure, and 421.1 billion yuan was used for transportation infrastructure. However, since the second quarter, the pace of issuing new special bonds has slowed down. The limit for newly added local government special bonds in 2023 is 3.8 trillion yuan, which is higher than the 3.65 trillion yuan in 2022. According to the research team of CITIC Securities, as of August 7th, the issuance progress of newly added special bonds with a target annual issuance limit of 3.8 trillion yuan was only 68.8%. Experts from China Chengxin International Research Institute have stated that infrastructure investment has maintained stable growth since the beginning of this year, driven by the recent increase in new special bonds. However, with the slow pace of new special bond issuance, combined with local financial pressure and limited budgets leaning more towards the field of people's livelihood, the supporting role of special bonds for infrastructure investment needs to be further strengthened. The recent Central Political Bureau meeting emphasized the need to better leverage the role of government investment and accelerate the issuance and use of local government special bonds. Experts say that in the next stage, against the backdrop of a marginal slowdown in economic recovery, a fading base effect, and an expected warming of stable growth policies, the pace of issuing and using new special bonds within the year will be accelerated, promoting early issuance and use, forming physical workload as soon as possible, and playing a countercyclical adjustment role to help stabilize growth. The reporter noticed that recently, multiple provinces and cities have disclosed plans for the issuance of special bonds in August. On August 9th, the Shaanxi Provincial Department of Finance released a total of 25.19 billion yuan in government bond issuance plan for August, including 4 billion yuan in newly added special bonds. Previously, provinces and cities such as Shanghai, Hebei, and Zhejiang also made clear their August issuance plans. According to Wind's statistics, the new issuance scale of special bonds in July was 245.7 billion yuan. Under the annual issuance limit of 3.8 trillion yuan, the remaining issuance limit from August to December is 1.25 trillion yuan. "CITIC Securities Chief Economist Mingming stated that the issuance pace of new special bonds in August has increased compared to July, and it is expected that the remaining amount of special bonds will be issued more in August and September, with a single month issuance volume of over 600 billion yuan. The industry points out that in order to better leverage the government
Edit：Hou Wenzhe Responsible editor：WeiZe
Source：Economic Information Daily
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