Local governments to borrow more in '18

Economists expect local governments in China to increase bond issuance moderately next year to support major investment projects, while the top authority remained determined to further rein in illegal fundraising and prevent risks.

Local governments have issued a total of 4.36 trillion yuan ($665 billion) in bonds this year, a drop of nearly 28 percent from last year's 6.05 trillion yuan, according to data from China Central Depository and Clearing Co Ltd, the national bond information platform. This occurred as tightening financial regulations have weakened the country's bond market and pushed issuance costs up.

Experts who are close to the Ministry of Finance told China Daily that in 2018, local governments are expected to issue more bonds to ensure investment, especially in high-end manufacturing and innovation sectors, a measure supporting "high-quality" economic development stressed in the recent Central Economic Work Conference.