NVDA Q3 Earnings Alert: Why our AI stock picker is still holding Nvidia stockRead More

China allocates $33 billion from sovereign bonds for disaster-hit infrastructure -state media

Published 12/17/2023, 10:29 PM
Updated 12/18/2023, 06:51 AM
© Reuters. FILE PHOTO: A bridge is damaged after remnants of Typhoon Doksuri brought rains and floods in Beijing, China August 2, 2023. REUTERS/Tingshu Wang
USD/CNY
-

BEIJING (Reuters) -China's finance ministry has allocated a first batch of 237.9 billion yuan ($33.38 billion) of funds from sovereign bonds as of Monday, in an effort to support the renovation of infrastructure in areas hit by natural disasters, state media CCTV reported.

The funds were part of a plan unveiled in October when China said it would issue 1 trillion yuan of sovereign bonds to enhance disaster-prevention infrastructure, the report said.

The plan to help rebuild areas hit by this year's floods and improve urban infrastructure to cope with future disasters has widened China's 2023 fiscal deficit target to 3.8% of gross domestic product from the original 3%.

The first batch of funds will support more than 2,900 projects, CCTV reported, including 107.5 billion yuan to help with rebuilding and disaster prevention and mitigation.

Another 125.4 billion yuan will be used to subsidise high-standard farmland in the northeastern region and the Beijing-Tianjin-Hebei region, and 5 billion yuan will go to major natural disaster prevention and control system projects, CCTV added.

"Once a batch of projects is confirmed, the funds will be allocated in a timely manner," state media Xinhua reported on Monday, citing Wang Jianfan, the head of budget department at the finance ministry.

"A total of 500 billion yuan under this year's budget arrangement will be allocated as soon as possible based on project approvals," according to Xinhua, while another 500 billion yuan will be carried over to next year.

China's finance ministry did not respond immediately to a Reuters request for comment on when it started issuing the bonds.

China has grappled with weather extremes this year, from ultra-low temperatures in January to record rainfall and a blistering hot summer, in wild swings that scientists attribute to climate change.

Temperatures in parts of China, including in provinces Shanxi, Hebei and Liaoning, hit their lowest levels since records began, CCTV said on Sunday, as a cold snap gripped large swathes of the country.

© Reuters. FILE PHOTO: A bridge is damaged after remnants of Typhoon Doksuri brought rains and floods in Beijing, China August 2, 2023. REUTERS/Tingshu Wang

Northern China, including the capital city of Beijing, were the hardest hit by floods after record rainfall from Typhoon Doksuri in July and August. Southern China, including economic powerhouses Guangdong and Fujian provinces, has been hit by two typhoons since September.

($1 = 7.1274 Chinese yuan renminbi)

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.