Following the implementation of the policy interest rate cut in August and the reduction of the quoted interest rate (LPR) in the loan market, the new round of stable growth policy is being intensified< Br > < div class = "height" > < / div > Premier Li Keqiang presided over the executive meeting of the State Council on August 24 to deploy the follow-up policies and measures of the package of policies to stabilize the economy and strengthen the foundation for economic recovery and development. It is mentioned that the quota of policy oriented development financial instruments of more than 300 billion yuan should be increased, and the balance quota of special bonds of more than 500 billion yuan should be properly used according to law. We will continue to release the reform and transmission effect of the quoted interest rate in the loan market and reduce financing costs< Br > < div class = "height" > < / div > how to understand the “make good use of the balance limit of more than 500 billion yuan of special bonds” proposed by the national standing committee< Br > < div class = "height" > < / div > according to the latest data released by the Ministry of finance, the national local government debt limit in 2022 is 37647430 million yuan, of which the general debt limit is 15828922 million yuan and the special debt limit is 21818508 million yuan. By the end of June 2022, the debt balance of local governments nationwide was 34750.3 billion yuan, which was controlled within the limit approved by the National People’s Congress. Among them, the general debt was 14485.8 billion yuan and the special debt was 20264.5 billion yuan. This means that by the end of June this year, the balance of local government special bonds was about 1.55 trillion yuan from the limit< Br > < div class = "height" > < / div > for the application of the special debt limit, the decision-making level has previously released a signal. On July 28, the Political Bureau of the CPC Central Committee held a meeting to analyze and study the current economic situation and deploy the economic work in the second half of the year. It is mentioned that “make good use of the special bond funds of local governments and support local governments to make full use of the special debt quota”< Br > < div class = "height" > < / div > as for the “making good use of the special debt balance limit of more than 500 billion yuan according to law” mentioned by the national standing committee, the institution believes that it will play a driving role in infrastructure investment, GDP and social financing scale< Br > < div class = "height" > < / div > Wang Qing, chief Macro Analyst of Dongfang Jincheng, said in a news interview that “we should make good use of the balance limit of more than 500 billion yuan of special bonds according to law”, which means that after the 3.65 trillion yuan of new local government special bonds in June this year is “basically issued”, we will arrange to issue another 500 billion yuan of special bonds next, mainly for infrastructure construction. Therefore, there is no suspense that infrastructure investment will increase to more than double digits in the second half of the year. According to its judgment, the year-on-year growth rate of infrastructure investment in the whole year is expected to reach about 10%, which will be significantly higher than the growth rate of 0.4% last year, and will accelerate the GDP growth rate of this year by about 1 percentage point, thus playing a mainstay role in this round of steady growth< Br > < div class = "height" > < / div > Liu Yu, chief analyst of fixed income of Guangfa Securities, and his team pointed out in the report that the special bonds of more than 500 billion yuan had a pulling effect on the year-on-year growth of social financing slightly higher than 0.16 percentage points. The reason why the general debt limit is not clearly used in this round may be that the new general debt needs to be included in the deficit and needs to be approved by the Standing Committee of the National People’s Congress< Br > < div class = "height" > < / div > in the previous analysis report, Liu Yu’s team pointed out that there is a possibility of using the quota of previous years for local special bonds, and the resistance is less than that of the new special bonds issued in 2023. It is estimated that the utilization scale is 500-600 billion yuan< Br > < div class = "height" > < / div > “the limit of special bonds used in this round basically conforms to our prediction. Our judgment is mainly based on the use scale of the two rounds of special refinancing bonds. Compared with the use of the previous two rounds of special refinancing bonds, the special bonds of more than 500 billion yuan in this round may be mainly used as new special bonds for project investment. The third batch of local government special bond projects in the previous year have been declared.” Liu Yu’s team said.