RMB 300 billion in bonds is planned to be issued from the China Development Bank (CDB) and China’s Agricultural Development Bank (ABC) to support local infrastructure construction, as announced by China’s state media.
In particular, the CDB will issue about RMB 200 billion ($32.26 billion) and the ABC will issue RMB 100 billion ($16.13 billion), with the combined figure possibly being the first batch of RMB 1 trillion ($161.30 billion) in bonds to be issued by Chinese national banks to help fund local construction projects through a special construction fund. It has been reported that the central government will provide the bonds to the banks at a 90 percent discount. The construction projects in question would include fields such as affordable housing, water conservation, urban pipelines and gas, among others.