Subscribe to the BlogChina has planned to bonds worth 200 billion to fund the infrastructure projects of local governments. About 1.42 trillion yuan of treasury debt was sold last year. The sales was aimed at financing the highest ever fiscal deficit last year.
The finance ministry of China would be organizing the debt auctions and would offer 3 year and 5 year security bond. The central government’s involvement in the debt sales has reduced the cost of building infrastructure and had lead to the GDP expansion by 8.7 percent.
Experts feel that financing project this way is much healthier way of management than bank lending that risks property and stock markets