The reporter sorted out the data disclosed on the special bond information website and found that as of now, the issuance of local bonds has exceeded 8.5 trillion yuan this year. Among them, the newly added special bonds amounted to 3679.5 billion yuan, and the newly added general bonds amounted to 644.4 billion yuan. The issuance scale of "special" newly added special bonds far exceeds the 800 billion yuan quota arranged last year. Zhang Yiqun, Vice Chairman of the Performance Special Committee of the Chinese Society of Finance, stated in an interview with Shanghai Securities News that the progress of local bond issuance this year has remained generally stable and fast with progress. In particular, the progress of local replacement bond issuance has been basically completed, and the issuance of new bonds and economic growth have basically kept pace, playing a key role in the sustained improvement of the economy. Since the beginning of this year, the issuance of local bonds has increased significantly year-on-year, reflecting the proactive fiscal policy. From the perspective of the investment direction of newly added special bond funds, the infrastructure sector is still the main investment direction. ”Feng Lin, Executive Director of Dongfang Jincheng Research and Development Department, told Shanghai Securities News reporters. According to data from Enterprise Early Warning, in the first three quarters of this year, about 28% of the 2.5 trillion yuan new special bond projects issued by local governments for project construction were invested in municipal and industrial park infrastructure, about 18% in transportation infrastructure, about 14% in land reserves, about 12% in affordable housing projects, about 12% in social undertakings such as healthcare, cultural tourism, and education, and about 6% in agriculture, forestry, and water conservancy. In recent years, there has been a significant increase in the issuance of local replacement bonds. According to the proposal passed by the Standing Committee of the National People's Congress in November last year, in addition to arranging a quota of 6 trillion yuan for local government debt to replace existing implicit debt, starting from 2024, 800 billion yuan will be allocated annually from newly added local government special bonds to supplement government funds, which will be specifically used for debt conversion. According to data from Enterprise Early Warning, in the first three quarters of this year, the issuance scale of "special" newly added special bonds in local government bonds was about 1.2 trillion yuan, exceeding the previously arranged quota of 800 billion yuan. Perhaps it is because the purpose of the 'special' newly added special bonds has been expanded, such as being arranged to repay overdue debts or invested in government investment funds, "said Feng Lin. Feng Lin further analyzed that as of the end of September, a total of 1.98 trillion yuan of refinancing special bonds for replacing hidden bonds had been issued. At the same time, the remaining amount of newly issued special bonds is 722.8 billion yuan. Taking into account the maturity pressure, without the introduction of incremental policies, it is expected that the issuance of local government bonds in the fourth quarter will be about 1.2 trillion yuan, with a net financing of about 600 billion yuan. Compared with the first three quarters and the same period last year, the supply pressure has significantly weakened. The issuance of local bonds in the fourth quarter will continue to maintain corresponding intensity, play a more active role in finance, and further strengthen coordination and linkage with other policy financial instruments. ”Zhang Yiqun believes. The issuance of new bonds by local governments this year is nearing completion. Recently, several experts have suggested further clarifying the minimum scale of local implicit debt, moderately increasing the local government debt limit, and providing more policy space for local governments to alleviate debt pressure and optimize debt structure. In Zhang Yiqun's view, in order to accelerate the relief of local government debt pressure and reduce hidden debt risks, it is possible to consider including some replacement bonds issued before the end of this year, which will moderately advance the pace of resolving hidden debt risks. This can not only greatly alleviate the pressure on local fiscal revenue and expenditure, but also release positive signals of stabilizing the economy, promoting growth, and strong expectations, effectively stimulate and mobilize market factor activity, and lay a good foundation for the beginning of the 15th Five Year Plan. At the press conference held by the State Council Information Office on September 12, Finance Minister Lan Fo'an introduced that a package of debt restructuring measures will continue to be implemented, and some new local government debt quotas for 2026 will be issued in advance, and the debt restructuring quota will be used earlier. Multiple measures will be taken to resolve the existing implicit debt. Feng Lin analyzed that the "early use of bond quota" may refer to the 2026 new quota issued in advance starting from the fourth quarter, or it may refer to the early issuance in the first quarter of next year. From the actual implementation situation in the past, it is more likely to be issued earlier in the first quarter of next year. However, considering that the amount of replacement bonds issued this year has been basically completed and the overall supply pressure of local government bonds in the fourth quarter is relatively small, the possibility of partially replacing the implicit debt of local governments next year and issuing it in the fourth quarter of this year cannot be ruled out. If it is issued in advance, it will be beneficial for local governments to allocate more funds for development and construction, thereby releasing the stable growth momentum of local governments in infrastructure investment and stabilizing the economic operation in the fourth quarter. (New Society)