China to raise $44.87 billion via bond issuance

In this undated photo, a clerk counts renminbi yuan banknotes in Nantong, East China's Jiangsu province. The People's Bank of China, the country's central bank, will support two policy banks to raise up to 300 billion yuan $44.87 billion via financial bond issuance to fund the country's major projects, a PBOC official said.

The funds, raised by the China Development Bank and the Agricultural Development Bank of China, will be used to replenish the capital for major projects such as new infrastructure without exceeding half of the total investment.

The official said infrastructure investment is an important measure of stabilizing the macro economy.

The funds, raised by the China Development Bank and the Agricultural Development Bank of China, are intended to replenish capital for major projects such as new infrastructure without more than half of the total investment, or to bridge financing for projects funded by special-purpose bonds, the official said.

The central government will give interest discounts for a period of two years, in accordance with the amount of equity invested.

The National Development and Reform Commission will work with local governments and relevant central government departments as well as central enterprises to form a sufficient list of projects, and the two policy banks will decide which projects they want to invest in.