(Yicai Global) Sept. 29 -- China is expected to dip into next year's special bond quota early to stabilize economic growth.

The government proposed releasing part of the 2023 special bond quota in advance during a meeting yesterday.

The initiative could help solidify economic growth as local governments could issue the bonds already at the beginning of 2023, Wen Laicheng, professor at Beijing's Central University of Finance and Economics, told Yicai Global.

The bonds could drive investment and consumption, prompting the economy to run in a reasonable range in the first quarter, Wen said. The economy will face downward pressures next year so planning is necessary, the professor added.

Usually, the finance ministry allocates the quota every March after it is approved by the National People's Congress. The schedule means that local government bonds tend to be issued in the second half of the year, affecting financing efficiency.

The system is changing through exceptions as in late 2018 the Standing Committee of the NPC decided to allow the State Council to unleash part of next year's bonds early. The sum could equal up to 60 percent of the ongoing year's quota. However, the authorization expires in December but in this macroeconomic situation it is expected to be extended, Wen predicted.

Last December, the Ministry of Finance made an early move to issue a special bond quota of CNY1.46 trillion (USD200 billion) for this year, accounting for 40 percent of the annual total. The huge investment went to municipalities, transportation, and social programs, and played an important role in macroeconomic balancing.

Special bonds are used to support nine major areas such as transportation, agriculture, and environmental protection. This year, the fields of new infrastructure and new energy have been added.

In recent years, the value of special bonds offered in advance has exceeded CNY1 trillion each year. After that, regional governments have moved onto issuing conventional municipal bonds in January.

Editors: Shi Yi, Emmi Laine, Xiao Yi