Local bonds aim to meet annual quota

Provincial and city governments are working to meet their annual bond issuance quota despite the fact that in the first half of the year, they had reached far less than 50 percent of their full-year allowance, according to statistics from China Central Depository and Clearing Co Ltd.

The annual quota for "special purpose bonds" is 1.35 trillion yuan ($214 billion), which was approved by the National People's Congress in March, and the quota must not be exceeded as many are struggling to manage debt burdens.

However, many local governments aim to reach their respective ceilings as they need the funds for infrastructure projects and existing debt refinancing. The special bonds are not counted as part of fiscal budgets.