Bonds to help shantytown bid

Analysts see their issuance as key means of fueling investment and boosting growth

Bond issuances by local governments in China, with the specific remit of supporting shantytown renovation, is likely to accelerate in the coming months as a financial facility to fuel infrastructure investment and support economic growth, said analysts.

In terms of fiscal policy, "the central government's subsidies (for the shantytown renovation program) will not be reduced, and these will be accompanied by an increase in shantytown renovation-related special local government bond issuance," said an expert close to the Ministry of Finance.