Bond Decisions
The Sixth Session of the 14th Standing Committee of the National People’s Congress (NPC), China’s top legislature, passed a decision on October 24 authorizing the State Council to allocate some of the new local government bond quota in advance.
According to the decision, the State Council could allow local governments to front-load part of their 2024 bond quota to maintain steady investment, expand domestic demand and strengthen weak links.
The State Council would determine the amount a local government could borrow ahead of time, and the measure would last for four years from October onward, through to late 2027.
The measure will help speed up the issuance and use of local government bonds and ensure the funding needs of major projects in key areas.
Another decision adopted by the NPC Standing Committee at the session approved the State
Council to issue 1 trillion yuan ($136.8 billion) in additional government bonds in the fourth quarter of this year to support the reconstruction of disasterhit areas and raise the country’s disaster relief capabilities.
The bonds will be transferred to local governments. A total of 500 billion yuan ($68.4 billion) will be used this year, and another 500 billion yuan will be carried over to next year.
The additional bond issuance will widen the country’s 2023 budget deficit ratio to around 3.8 percent from 3 percent.
Sports Industry
China aims to develop outdoor sports into a 3-trillion-yuan ($418 billion) industry by 2025, according to an action plan released by the Central Government on October 24.
The action plan, which covers the 2023-25 period, seeks to boost the construction of outdoor sports facilities and improve outdoor sports services.
It was jointly issued by five government departments, including the National Development and Reform Commission, the General Administration of Sport of China, the Ministry of Natural Resources, the Ministry of Water Resources and the National Forestry and Grassland Administration.
The plan proposes that by 2025, the newly constructed outdoor sports facilities and the quality of services will be able to effectively cater to public demand as more population groups engage in outdoor sports activities. Meanwhile, the nation will improve its safety supervision policies and further enrich outdoor sports events.
The plan identifies multiple specific tasks that are to be carried out. This includes the promotion of green development through the proper use of natural resources, the construction of sports parks and the improvement of facilities for a wide range of outdoor activities such as ice and snow sports, mountain sports, and water sports.