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          August 03, 2021

          The Management of Local Government Bond is Becoming More Normalized,Local Government Finance Vehicle May Face a Further Tightened Financing Environment

          Hong Kong, 3 August 2021 -- China Chengxin International Credit Rating Co., Ltd. (“CCXI”) issued a report entitled The Budget System Reform Keeps Going Deeper and Local Government Bonds Come under Increasingly Normalized Management: 2021 H1 Review and Outlook for the Next Stage of Local Government Bonds and LGFV, According to the Report, 2021 will be the year when the Chinese economy continues to recover from the COVID-19 pandemic and the 14th Five-Year Plan gets off a good start. As a modern fiscal and taxation regime is coming in place, the reform of the budget management system goes deeper. In this context, China makes it a normal practice to directly allocate fiscal funds to prefecture- and county-level governments, and ensures this practice can function well.

           

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