The Ministry of Finance is to issue 47 billion yuan of municipal bonds next Monday. The bonds will be issued in 12 provinces and cities.
The central government has planned to issue around 200 billion yuan of municipal bonds this year. But only 67 billion of the bonds have been issued, less than half the government target.
Analysts say the bond will ease market fears about the quality of local financing channels. It will also boost local government debt solvability. The central government also requires the bonds to be used on public interest related projects.