China issues guidelines on improving local government special bond management

China has released guidelines for improving the management mechanism of local government special bonds, broadening the scope of eligible projects, proposing a negative list mechanism and allowing pilot regions to adopt a self-review system.

The guidelines, released by the State Council, the cabinet, outlined 17 measures across seven areas, with the goal of leveraging the positive effect of special bonds in strengthening infrastructure, addressing weak links, improving public welfare, and boosting investment. The guidelines proposed broadening the scope of investment for special bonds and