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Relaxed rules could bring 870 billion yuan more funding to infrastructure projects

China has relaxed funding rules for infrastructure projects to boost the slowing economy amid the bitter trade war with the US. Analysts believe that the new move could increase funding for infrastructure investment by up to 870 billion yuan.

Local governments are now allowed to use proceeds from special bonds for major infrastructure projects including highways, railways, electricity and gas projects, in a move to “increase effective investment, improve economic structure, stabilize aggregate demand and maintain sustained and healthy economic development,while putting governments’ hidden debts under check”, said the State Council in a statement on Monday.


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