Core Viewpoint - The issuance of new special bonds for project construction by local governments is nearing completion for the year, but this does not signify the end of the issuance process for special bonds in 2023 [1][2]. Group 1: Special Bond Issuance - As of June 30, 2022, the balance of local government special debt was approximately 20.62 trillion yuan, which is 1.55 trillion yuan below the limit of 21.82 trillion yuan [1][6]. - In the first half of the year, new special bonds issued amounted to 34,062 billion yuan, with market-oriented financing exceeding 530 billion yuan [2][6]. - From July 1 to August 17, only 634 billion yuan in new special bonds were issued, significantly lower than the 13,724 billion yuan issued in June [2]. Group 2: Utilization of Remaining Quotas - Experts suggest that there is potential for over 1 trillion yuan in new special bond issuance in the second half of the year, given the remaining quota [1][5]. - The central government encourages local governments to utilize the remaining debt quota effectively, with a focus on accelerating project construction to boost effective investment [3][4]. - The remaining quotas are primarily concentrated in economically developed eastern coastal regions, such as Shanghai, Fujian, Shandong, Guangdong, and Jiangsu [6]. Group 3: Policy and Regulatory Framework - The State Council's 2014 guidelines on local government debt management stipulate that local governments must not exceed approved debt limits [3]. - The process of utilizing remaining quotas is simpler compared to issuing special treasury bonds or using next year's quotas, requiring only approval from the Ministry of Finance [4]. - Recent measures include increasing policy bank credit limits by 800 billion yuan and establishing 300 billion yuan in policy development financial tools to support infrastructure funding [2].