China's local governments issued an additional 1.08 trillion yuan in special bonds by the end of this March, which will be used to fund major infrastructure projects, including railways and environmental protection projects, said China's deputy finance minister at a State Council presser today.

The issuance of special bonds serves to hedge the economic downturn pressure caused by the outbreak of coronavirus. The Chinese government hopes to revitalize the country's economy through large-scale infrastructure projects as it did previously during the 2008 global financial crisis.

The special bond issuance scale increased 63 percent compared to the same period last year. Long-term bonds with over 10 years make up 86 percent of the total bond issuance. In 2019, only 34 percent of the government bond was over 10 years.

"The lasting period of this year's special bond is better matched to the actual duration of the infrastructure projects, it's more reasonable," said Xu Hongcai, the deputy finance minister.

The money raised from special bonds will be prioritized for investing in seven fields – transport infrastructure, energy projects, agriculture, forestry and water conservancy, cold chain logistic facilities, industrial parks and services that can improve people's livelihoods, according to Xu.

The funds will also be allocated to digital infrastructure such as data centers, internet of things and the 5G network, Xu said.