China announces additional local government debt quota to support growth

On October 9, China's Ministry of Finance announced that it had allocated Yuan 550 billion ($82.2 billion) from the remaining local government debt quota, and the funds will be used to strengthen general public budget capacity at the county and district levels and support local governments in expanding effective investment.

At a late-September State Council executive meeting, policymakers called for a package of practical, effective incremental measures to address emerging economic challenges, including making better use of the remaining local government debt quota. The latest announcement paves the way for an additional Yuan 550 billion in local government bond issuance