China to optimise use of special bonds for economic recovery next year

China will make good use of local government special bonds next year to support the economic recovery, state media said on Monday, citing a cabinet meeting. 

China will improve mechanisms to review and manage special bond projects and increase local government autonomy and flexibility, state media said. 

"The issuance and use of special bonds for the coming year should be well-prepared to generate physical workloads as early as possible, providing strong support for the sustained recovery of the economy," the cabinet was quoted as saying. 

China has said local governments will be allowed to use special bonds to purchase unused land and support the purchase of existing commercial housing for use as affordable housing. 

China's leaders have pledged to increase the budget deficit, issue more debt and loosen monetary policy to maintain a stable economic growth rate as it girds for more trade tensions with the United States as Donald Trump returns to the White House. 

China set the 2024 quota for local government special bond issuance at 3.9 trillion yuan ($535 billion), up from 3.8 trillion yuan last year.