Review • July data
In July 2023, a total of RMB619.251 billion of local government bonds were issued, RMB235.400 billion of new bonds (RMB196.290 billion for special bonds and RMB39.110 billion for general bonds), and RMB383.852 billion for refinancing bonds (RMB154.192 billion for special bonds and RMB229.660 billion for general bonds).
In July 2023, the average issuance period of local government bonds was 10.10 years, including 7.08 years for general bonds and 12.41 years for special bonds.
In July 2023, the average issuance rate of local government bonds was 2.74%, of which 2.66% for general bonds and 2.81% for special bonds.
Issuance size
From the perspective of the issuance scale in August, local government bonds issued a total of 1.310937 billion yuan, an increase of 111.70% from the previous month. Among them, 744.302 billion yuan of new bonds were issued (596.578 billion yuan of special bonds and 147.723 billion yuan of general bonds), and 566.635 billion yuan of refinancing bonds (381.234 billion yuan of special bonds and 185.401 billion yuan of general bonds). Local government bond issuance in August was dominated by new bonds. New bonds accounted for 56.78% of local government bond issuance in August. New bond issuance was mainly new special bonds, which accounted for 80.15% of the new bond issuance scale in August.
The issuance of new special bonds in 2023 is required to be completed by the end of September, and by the end of August, 3.093717 billion yuan of new special bonds have been issued, and the new limit in 2023 is 3.8000000 billion yuan, and the issuance amount is expected to reach 706.283 billion yuan in September.
Invest in the field
From the perspective of capital investment, 596.578 billion yuan of new special bonds were issued in August, and the funds were mainly used in the fields of municipal and industrial park infrastructure, social undertakings and transportation infrastructure, accounting for 37.19%, 15.91% and 15.65% respectively.
Duration of issuance
From the perspective of issuance period, the average maturity of local government bonds in August was 12.59 years, of which the average maturity of new special bonds was 19.25 years, and the largest issuance scale of new special bonds was 30 years, with an issuance scale of 177.254 billion yuan, accounting for 29.71% of the issuance scale of new special bonds.
Issuance rate
From the perspective of issuance interest rates, the average interest rate of local government bonds issued nationwide in August was 2.74%, which was the same as the average interest rate issued in July, of which the average interest rate of new special bonds was 2.93%, which was lower than the average interest rate of 2.96% for new special bonds in July.
The overall interest rate on bond issuance increases with the extension of the issuance period.
Distribution region
In terms of issuance areas, a total of 34 regions issued local government bonds in August, with the top three provinces and cities issuing 215.359 billion yuan in Guangdong Province, 120.907 billion yuan in Shandong Province and 106.094 billion yuan in Hebei Province. The top three provinces and cities in terms of new special bond issuance scale were Guangdong Province with 145.201 billion yuan, Hebei Province with 63.517 billion yuan and Henan Province with 53.031 billion yuan.
Comparison of the issuance plan with the actual issuance amount
Comparing the issuance plans of various provinces and cities with the actual issuance scale, in August, the actual issuance scale of local government bonds in various provinces and cities was larger than the planned issuance scale.
In August, the planned issuance scale of new bonds was 574.013 billion yuan, and the actual issuance scale was 744.302 billion yuan, and the actual issuance scale of new bonds was 29.67% higher than the planned issuance scale;
In August, the planned issuance scale of refinancing bonds was 490.670 billion yuan, and the actual issuance scale was 566.635 billion yuan, and the actual issuance scale of refinancing bonds was 15.48% higher than the planned issuance scale.
Remark:
Orange indicates that the actual issuance scale has increased from the planned issuance scale, green indicates that the actual issuance scale is equal to the planned issuance scale, and blue indicates that the actual issuance scale has decreased from the planned issuance scale.
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