Shaanxi Join! 18 provinces and cities have planned to issue special refinancing bonds totaling more than 730 billion

Unlike ordinary refinancing bonds, the raised funds are used to repay the principal of matured government bonds, and the raised funds of special refinancing bonds are used to replace local implicit debt.

According to the document disclosed by Shaanxi Provincial Department of Finance on China Bond Information Network, Shaanxi Province plans to issue 10 billion yuan of special refinancing bonds on October 24, including 4.47 billion yuan of general refinancing bonds and 5.53 billion yuan of special refinancing bonds. The above bonds are book entry fixed rate interest paying bonds, which will be used to repay the outstanding debt.

According to the document, the debt limit of Shaanxi Province will be 1059 billion yuan in 2022. By the end of 2022, the provincial debt balance was 978.68 billion yuan, including 462.03 billion yuan of general debt and 516.65 billion yuan of special debt.

This is the 18th region to issue special refinancing bonds. Since October 6, Inner Mongolia, Tianjin, Liaoning and other places have disclosed the documents on the proposed issuance of special refinancing bonds. According to surging news statistics, as of October 17, the total amount of special refinancing bonds disclosed by 18 provinces and cities nationwide was 736.25358 billion yuan.

Zhang Wei, an analyst with Founder Securities, believes that the pace of this special refinancing bond issuance is too fast, and there is a possibility that the issuance scale will exceed expectations, which will increase the supply of government bonds and bring negative disturbance to the bond market. Yang Yewei, chief analyst of Guosheng Securities, said that refinancing debt is a replacement of existing debt, and there is no need to worry about supply shocks.

Zhang Xu, an analyst with Everbright Securities, believes that the issuance of a large number of special refinancing bonds will have an impact on investors' psychology, but will have less impact on the trend of the bond market. For example, the information that a large number of replacement bonds were issued at the beginning of March 2015 triggered panic among investors, which led to an obvious increase in the bond market yield, but throughout the year, the bond market yield represented by 10-year treasury bonds was still downward.

key word: Refinancing Founder Securities Supply shock Guosheng Securities Bond issuance