China's local government special-purpose bond sales slowed sharply this year amid tighter scrutiny

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China's local government special-purpose bond sales have been significantly slower than the previous two year, becoming a major factor dragging down growth of the country's infrastructure investment.

According to data released by the Ministry of Finance, Chinese local governments issued only 232 billion yuan of special-purpose bonds in the first four months of the year, which accounted for only 6.4 per cent of the annual quota approved by the legislature.

Special-purpose bonds are designated for investment in infrastructure and public welfare projects which are commercially viable. They must be . . .

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