China's Ministry of Finance said regions tightened special bond issuance and use
in 1H and policy effects continue. The MoF has stepped up through‑the‑chain
supervision and carried out scan‑style inspections of special bond fund use, and
will investigate violations. MoF deputy director Zhao Zeyong said the ministry
will guide and urge local governments to further strengthen closed‑loop
management of special bonds' "borrow‑use‑manage‑repay", better coordinate fund
deployment and project construction, accelerate disbursements to produce
physical work, enforce a negative‑list on permitted uses, ensure collection of
project operating income and improve debt‑servicing capacity.
