Shenzhen started issuing 11.9 billion yuan (US$1.6 billion) worth of government bonds yesterday, the third batch this year, a source from the Shenzhen Municipal Finance Bureau said.
The bonds are being issued to raise funds for a variety of projects including railways, public health, water pollution treatment, parking lots, housing estate renovation and pre-school education projects as well as larger projects relating to Shenzhen-Hong Kong cooperation and industrial parks.
On Jan. 13 and April 2, the city had issued 800 million yuan bonds and 17.6 billion yuan special bonds, respectively. Before the end of this month, the city will complete the 2020 tasks of bond issuance required by the Ministry of Finance.
Construction projects that have already started will be given priority to the raised money. Already earmarked funds include: 4.13 billion yuan for sewage water and garbage treatment, 3.09 billion yuan for public health, 1.19 billion yuan for infrastructure construction in industrial parks and 1.09 billion yuan for the culture and tourism sector.
The government bonds of Shenzhen are low-risk with guaranteed repayment. The interest income is exempted from individual or corporate income tax.
Government bonds are issued to the primary market such as banks and investment agencies. Individual investors interested in purchasing the bonds can inquire through commercial banks.