Intensifying policy implementation helps stabilize growth and expectation

China issued an additional 1 trillion yuan ($137.49 billion) of government bonds in the fourth quarter of last year to support post-disaster recovery and reconstruction and improve disaster prevention, mitigation and relief capabilities. Latest statistics show that up to now, all the 15,000 projects funded by such bonds have been launched, a sign of China's strengthened macro-regulation to play the role of government investment in boosting the economy.

Restoring and expanding demand is the key to sustained economic recovery while actively expanding effective investment is a key part of expanding domestic demand, in which government investment should play driving effects on social investment. In addition to these additional government bonds, China also plans to issue 1 trillion yuan of ultra-long special government bonds by mid-November. At the same time, the issuance and use of local government special bonds covering more new infrastructure and new industries have also been accelerated.

By making good use of government bonds, special bonds and central budget funds in a coordinated manner, the country has supported the development of key areas and projects, and the investment sector has gained a strong momentum. In the first half of this year, China's infrastructure investment grew by 5.4 percent year-on-year, 1.5 percentage points faster than total investment, driving a total investment growth of 1.2 percentage points. All this shows that government investment has played a significant role in driving the steady growth of investment.