The move by the government comes amid signs that domestic economic momentum is weakening due to headwinds from the trade war with the United States. Photo: Bloomberg

China relaxes infrastructure project finance rules, but analysts warn it will have limited economic impact

  • Local governments can use bond proceeds to boost their ability to support major projects after tax cuts reduced their revenues
  • Authorities can also borrow more from banks to fund infrastructure projects without fear of regulatory crackdown on excess debt
Topic |   China economy

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The move by the government comes amid signs that domestic economic momentum is weakening due to headwinds from the trade war with the United States. Photo: Bloomberg
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Orange Wang

Orange Wang

Orange Wang covers the Chinese macroeconomy, and has many years of experience with China's monetary and fiscal policy moves. He also covered global market and financial news for a long time, with a particular focus on new technologies and their influences on economic growth and society. Before joining the South China Morning Post, Orange worked as a Shanghai Correspondent for ET Net, a Hong Kong financial news agency.