Local govt special bonds to get big boost next year

China will increase local governments' special bonds on "a large scale" next year, to guarantee enough fund injection into key infrastructure projects and to prevent debt risks, said Finance Minister Liu Kun.

One of next year's priority fiscal tasks will be to efficiently mitigate fiscal and financial risks, based on tightening regulations on illegal debt financing activities, Liu said at the ministry's annual work conference, which concluded on Friday.

The special-purpose bond, which usually raises funds for targeted infrastructure projects such as railways, roads and shantytown renovation, is seen as the legal financing channel for local Chinese governments. Any "hidden" ways to increase local government debt are forbidden.