Local governments across China are using special-purpose bonds – a form of off-budget debt – to raise case for economy-boosting infrastructure projects such as transport expansions. Photo: Xinhua
Local governments across China are using special-purpose bonds – a form of off-budget debt – to raise case for economy-boosting infrastructure projects such as transport expansions. Photo: Xinhua

Explainer |
China’s special-purpose bonds: what are the risks and rewards of infrastructure-fuelled debt?

  • Special-purpose bonds are a form of off-budget debt that cash-strapped local governments use to raise funds, usually for large infrastructure construction projects
  • China’s local governments are increasingly using special-purpose bond revenue to boost their local economies, but debt-fuelled infrastructure spending comes at a price

Knowledge |   China Economy
Local governments across China are using special-purpose bonds – a form of off-budget debt – to raise case for economy-boosting infrastructure projects such as transport expansions. Photo: Xinhua
Local governments across China are using special-purpose bonds – a form of off-budget debt – to raise case for economy-boosting infrastructure projects such as transport expansions. Photo: Xinhua
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