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Wuhan has been allocated a quota to issue three-year local government bonds worth Rmb3bn. This is part of a central government plan to allow local governments to issue bonds to finance public spending for the first time. The total quota released by the central government is Rmb200bn.
Provinces can also apply for these quotas. Wuhan was allocated Rmb3bn out of a total of Rmb8.1bn for Hubei province. A number of infrastructure projects including the metro line have applied to issue bonds. | |
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