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The latest China Perspectives Dashboard from Fitch has just been released. Among other things it says that roughly RMB 3 trillion in Special Bonds have been issued so far this year: “Our analysis suggests the largest category corresponds to funds raised for infrastructure...
The latest China Perspectives Dashboard from Fitch has just been released. Among other things it says that roughly RMB 3 trillion in Special Bonds have been issued so far this year: “Our analysis suggests the largest category corresponds to funds raised for infrastructure...
2/6
projects, which have more than tripled from the same period in 2019, accounting for almost one-third of Special Bonds issued this year."
RMB 3 trillion is 80% of the RMB 3.75 trillion quota for this year, with the latter equal to about 3.7% of GDP, and 75% greater than...
projects, which have more than tripled from the same period in 2019, accounting for almost one-third of Special Bonds issued this year."
RMB 3 trillion is 80% of the RMB 3.75 trillion quota for this year, with the latter equal to about 3.7% of GDP, and 75% greater than...
3/6
last year's issuance.
Fitch believes that about 7% of the roughly RMB 1 trillion that went into infrastructure was invested in "new infrastructure" – telecom and high tech (see below) – which many analysts have argued represents a shift from the...
news.cgtn.com/news/2020-05-0…
last year's issuance.
Fitch believes that about 7% of the roughly RMB 1 trillion that went into infrastructure was invested in "new infrastructure" – telecom and high tech (see below) – which many analysts have argued represents a shift from the...
news.cgtn.com/news/2020-05-0…
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massive amounts of non-productive investment on which Beijing has relied in the past into productive, leading-edge investment. This, they say, changes the dynamics of Chinese investment from non-productive to productive.
But even if you believe that all of this “new...
massive amounts of non-productive investment on which Beijing has relied in the past into productive, leading-edge investment. This, they say, changes the dynamics of Chinese investment from non-productive to productive.
But even if you believe that all of this “new...
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infrastructure” will be economically productive (and I am skeptical), we should keep a sense of proportion. The amount is a small part of the total, and just the increase in the amount of spending on old infrastructure this year will far exceed the total amount...
infrastructure” will be economically productive (and I am skeptical), we should keep a sense of proportion. The amount is a small part of the total, and just the increase in the amount of spending on old infrastructure this year will far exceed the total amount...
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that will be spent on “new infrastructure”. It would be foolish to assume, in other words, that the supposed focus on “new infrastructure” will change the debt dynamics.
that will be spent on “new infrastructure”. It would be foolish to assume, in other words, that the supposed focus on “new infrastructure” will change the debt dynamics.
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