Local govt bond issues to hit record

Funds to finance railways, agriculture infrastructure, water conservation

China is accelerating local government bond issuance, which is expected to hit a record high of the year in June, in an effort to stabilize economic growth and market expectations.

As of June 21, monthly local government bond issuance exceeded 594 billion yuan ($86.3 billion), and the planned issuance is over 200 billion yuan for the last week of June. As a result, the total issuance may reach 800 billion yuan for the month, according to statistics compiled by Wind, a leading financial data provider in China.