Researches & Commentaries

Structural Divergence in Urban Construction Investment Expected to Intensify, and Belief in Urban Construction Investment to Shatter amid Growth Control and Dissolution of Implicit Debts

Hong Kong, 19 April 2021 -- China Chengxin International Credit Rating Co., Ltd. (“CCXI”) issued a report entitled “UCIBs Continue to Expand as Risk Appetite Sinks, and Structural Divergence Aggravates Shattering of Belief in Urban Construction Investment”, According to the report, with the peak of maturity of urban construction investment bonds (UCIBs) approaching, under the pressure of refinancing, UCIBs are expected to be issued on a large scale in the year. The issue volume of UCIBs this year is estimated to be higher than that in the previous year and reach between RMB4.7 trillion and RMB5.0 trillion. Investors should pay close attention to the pressure of principal and interest repayment as debt repayment peaks, the structural divergence in urban construction investment against the backdrop of government efforts to control increase in and dissolve existing implicit debts, expand special-purpose bonds and promote the construction of new infrastructure, new urbanization initiatives and major projects, and watch out for the possibility that belief in urban construction investment will shatter.


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