A view of the Huangpu River in Shanghai. [Photo/VCG]

Shanghai will issue its first batch of local government bonds for 2024 on May 20, valued at 10 billion yuan ($1.38 billion), announced the Shanghai Municipal Finance Bureau on May 13.

These bonds will have maturities of three, 10, and 30 years, supporting municipal projects and being integrated into the general public budget in accordance with the Ministry of Finance's directives. China Lianhe Credit Ratings Co Ltd has granted a AAA rating to these bonds and will conduct annual monitoring assessments, according to the city's finance managing authority.

As of the end of 2023, Shanghai's debt ratio stood at 68 percent, significantly below the international benchmark of 100-120 percent and the national average. The city's total government debt was 883.23 billion yuan, with general debt at 367.55 billion yuan and special debt at 515.68 billion yuan. Local government bonds accounted for 99.99 percent of this debt.

The funds raised have been predominantly channeled towards municipal construction, land reserves, affordable housing, and transportation infrastructure, playing a crucial role in boosting local economic and social development, according to the city's finance bureau.

Source: eastday.com