China’s municipalities to issue special bonds for funding urban renewal, affordable housing to boost slumping economy

Local governments in China are planning to issue special bonds to fund urban renewal projects and affordable housing, the latest in a series of moves made by municipalities to boost growth and turn the tide in a slumping economy.

The southern province of Hunan on Monday issued urban renewal special bonds worth 234 million yuan (US$32 million) with a five-year maturity and a coupon of 2.66 per cent, according to China Electronic Local Government Bond Market Access, a local government bond disclosure website.