Shanghai plans to spend more than 100 billion yuan (HK$122.9 billion) in the next few years on infrastructure projects ranging from roads and bridges to affordable housing.
And the municipal government's main infrastructure firm, Shanghai Chengtou Corporation, says it will partly fund the projects by issuing 2.5 billion yuan of one-year bonds.
'As the development of the Yangtze River Delta takes shape while Shanghai builds itself as an international financial and shipping hub, and [Shanghai's] 12th five-year plan pushes the integration of urban and rural areas, the prospects for developing Shanghai's infrastructure will be even broader,' the company said in its prospectus for the bond issue.
Chengtou has some 77 infrastructure projects lined up over the next few years, with a total investment budget of 105.2 billion yuan, according to the prospectus. Those projects include roads, bridges, water works and affordable housing.
'As the main infrastructure construction firm of the Shanghai government and Shanghai's largest infrastructure conglomerate, our funding needs are large,' it said.
'In recent years, the scale of Shanghai's infrastructure construction has continued to increase, and that may bring financial pressure on the company in future.'