瑞银中国首席经济学家汪涛：地方融资应做到“堵后门”和“开前门”并举

Core Viewpoint - The infrastructure investment in China has shown a year-on-year growth of 7.3% in the first half of 2018, but the growth rate has decreased by 2.1 percentage points compared to the first five months of the year. There is a need for local governments to increase the issuance of debt and special bonds to avoid hidden financing methods while controlling local government debt [1][2]. Group 1: Financing Situation - The tightening of financing platforms and local government financing has led to a noticeable decline in infrastructure investment growth. Although bank loan growth remains strong, off-balance-sheet and entrusted loans have decreased, indicating a tighter control in line with deleveraging measures [2]. - The control of local government debt is deemed necessary to reduce financial risks, but it is essential to balance this with the normal financing needs of local governments, especially for infrastructure projects [2]. Group 2: Measures for Increasing Debt Issuance - To effectively "open the front door" for financing, it is suggested to narrow the channels for shadow credit and expand financing sources for local governments. The issuance of corporate bonds and local government bonds, including special bonds, is expected to increase in the second half of the year [3]. - The approved scale for new local government bonds this year is 2.18 trillion yuan, with only over 300 billion yuan issued by mid-year, indicating significant room for increased issuance [3].