BEIJING (Reuters) -China will speed up issuance of local government special bonds to help boost effective investment, state media quoted the cabinet as saying on Monday, in a bid to support a slowing economy.
China will speed issuance of local special bonds under the 2022 quota and will invest funds from 1.2 trillion yuan ($188.34 billion) in local bonds issued in the fourth quarter of 2021 into projects as soon as possible, the cabinet said.
In December, the finance ministry said it had issued 1.46 trillion yuan in the 2022 advance quota for local government special bonds to help spur investment and support the economy.
Increased government spending will help boost private investment in the first quarter of 2022, the cabinet said.
China will also expand final consumption, the cabinet said.
China’s economy faces multiple challenges as a property downturn and strict COVID-19 curbs have hit consumer spending.
($1 = 6.3715 Chinese yuan renminbi)
(Reporting by Kevin Yao and Beijing newsroom; Editing by Toby Chopra and Bernadette Baum)
