Core Viewpoint - Local governments are intensifying efforts to address overdue payments to enterprises by issuing new special bonds to raise funds for debt repayment [2][4][5] Group 1: Special Bond Issuance - Qinghai Province plans to issue approximately 11.7 billion yuan in government bonds, including 1.42 billion yuan in new special bonds specifically for repaying overdue payments to enterprises [2] - The central government has proposed a total of 4.4 trillion yuan in local government special bonds for 2025, an increase of 500 billion yuan from the previous year, with a focus on addressing overdue payments to enterprises [4] - Hunan Province has received a debt limit of 182.3 billion yuan, with 20 billion yuan allocated specifically for repaying overdue payments to enterprises, representing about 14% of the new special bond quota [4] Group 2: Financial Impact and Usage - As of July 4, approximately 2.22 trillion yuan in new special bonds have been issued, with about 519.5 billion yuan (23%) allocated for unspecified projects, likely including overdue payments and replacing hidden debts [5] - The Ministry of Finance plans to allocate 800 billion yuan annually from new local government special bonds from 2024 to 2028 to address hidden debts [6] - The overdue payment issue has intensified due to economic pressures, with a notable increase in accounts receivable and extended payment periods for small and medium-sized enterprises [6][8] Group 3: Regional Efforts and Challenges - Some regions have reported success in repaying overdue payments, with specific municipalities achieving significant reductions in government debts to enterprises [7] - Local government revenues have been under pressure, with a 1.9% increase in general public budget revenue and an 8.3% decline in government fund budget revenue in the first five months of the year [8] - The reliance on local financial resources for clearing overdue payments has led to challenges, making the issuance of special bonds a quicker solution to alleviate liquidity issues for enterprises [8]