Bonds May 14

Hubei issues 5-bn-yuan of bonds to fight coronavirus

Provincial officials say they want to implement an economic and social recovery; latest issue coincides with reports of a second wave of infections and mass testing in Wuhan

Hubei issues 5-bn yuan worth of bonds to fight coronavirus
A medical worker takes a swab sample from a resident to be tested for Covid-19 in Wuhan in China's central Hubei province on May 14, 2020. Nervous residents of China's pandemic epicentre queued up across the city to be tested for the coronavirus after a new cluster of cases sparked a mass screening campaign. Photo: STR / AFP

(ATF) The Hubei provincial government has successfully issued five-year refinanced general bonds worth 5.83 billion yuan through the Central Government Bond Company. The move coincides with reports of a 'second wave' of infections in Wuhan, and government moves to test all 11 million citizens in the city.

The Provincial Department of Finance said Hubei has issued just over 55 billion yuan in government bonds this year. Some 47.04 billion yuan were new bonds and 7.97 billion yuan were refinancing bonds. The funds raised is mainly for the coronavirus epidemic and post-epidemic economic and social development.

On January 23, the situation in Wuhan city was grim, according to Ciaoxang news. Hubei province urgently needed funds to construct new medical facilities, as well as purchase medical equipment, and support projects such as medical treatment and waste disposal throughout the province. 

Hubei's Department of Finance thoroughly investigated the needs for funds to control the coronavirus and prevent it from spreading across the province. So, it opened up a “green channel” to speedily organise project plans and make solid preparations for bond issuance, using considerable finance department staff. Hina’s Ministry of Finance offered bond issuance support. From February to May, the Ministry of Finance issued on-site bonds on behalf of Hubei for four operations. These had a cumulative issuance amount of 48.99 billion yuan. It also gave Hubei Provincial Government a special allowance that meant bonds “could be issued at any time.”

Now, Hubei Province wants to "fast forward" economic and social recovery, officials say, so the province will make every effort to accelerate the construction of major projects and strive to expand effective investment.

Hubei's Provincial Department of Finance will focus on utilising special government bonds, considering overall investment needs in public health and other shortcomings after the epidemic, and strengthen the construction of emergency management systems. It will organise relevant departments in various regions to actively and effectively carry out projects to accelerate bond issuance and use, and give full play to the role of special bonds in promoting effective investment.