China is loosening its rules on using special bonds to drive economic growth by allowing local officials to invest in more areas without strict approval. The move aims to increase investment and boost the economy, but also comes with some restrictions. Local governments can now use their special bonds to fund projects that are not listed as non-productive ventures, such as government buildings or vanity constructions like giant sculptures. However, these bonds must still adhere to broader guidelines set by the cabinet, and will be subject to periodic review. The move is part of a larger effort to increase public funding’s impact on local investment.
Source: https://www.bloomberg.com/news/articles/2024-12-25/china-seeks-to-spur-growth-by-giving-local-officials-bond-leeway