China taps 550b yuan in unused debt quotas

China has allocated 550 billion yuan ($81.7 billion) from the unused portion of local government debt limits to shore up the budgets of counties and county-level districts and support investment, the Ministry of Finance said on Friday.

More than half of the total — 300 billion yuan in general debt quotas — has been earmarked exclusively for counties and county-level districts to help cover spending under their general public budgets, according to the ministry.

The remaining 250 billion yuan in special debt quotas has been allocated to regions that need project financing in the fourth quarter, with preference given to provinces with large economies, it said.

Priority will go to projects already under construction. Funding for new projects will target key areas including the "six networks" — water, power, computing, telecommunications, urban pipelines and logistics — to help public investment draw in additional funding, the ministry added.

The ministry also pledged to guide local authorities in better coordinating bond sales with project preparation and accelerating both issuance and disbursement, helping funds reach projects faster and speeding up construction.