Call for special issue draws more support

PUBLISHED : Wednesday, 23 June, 1999, 12:00am
UPDATED : Wednesday, 23 June, 1999, 12:00am

Mainland government researchers have joined calls for a special bond issue in the second half of the year aimed at preventing the economy from slipping.

This would be in addition to Ministry of Finance plans to issue domestic and foreign bonds worth 341.5 billion yuan (about HK$317.5 billion) this year.

Lin Zhaomu, vice-president of the State Development Planning Commission's economic research centre, was quoted in the latest Hong Kong-based Outlook Weekly magazine as saying there was a need for a special bond issue worth 50 billion yuan.

The call comes after external demand and consumption have shown no signs of recovery despite attempts by Beijing to boost growth.

The proceeds from the special bond issue would go towards infrastructure investments, major industrial upgrading projects and high-technology sectors.

The issues planned by the Ministry of Finance are for 150.3 billion yuan to cover a record budget deficit and 191.2 billion yuan for debt servicing.

Prominent economists such as Hu Angang and Fan Gang have recently urged Beijing to issue 100 billion yuan to 150 billion yuan worth of special bonds.