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China has accelerated local government bond issuance this year, with the issuance hitting a new record high in May, to boost investment and mitigate the impacts of the coronavirus pandemic.
Local governments issued a total of 1.3 trillion yuan bonds in May, the highest one-month amount on record, according to data from the Wind Information. The previous record was seen in April 2016 when local authorities issued 1.06 trillion yuan bonds.
The surge in bond sales last month was primarily driven by a spike in issuance of special-purpose bonds. They issued . . .
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