China to invest 7 bln yuan of this year's T-bond proceeds in tech projects

SHANGHAI (AFX-ASIA) - China will use at least 7 bln yuan of proceeds from  this year's treasury bond issues to fund technology upgrades at state  enterprises, Gan Zhihe, director of the State Economic and Trade Commission's  investment department said, according to the China Daily.      Gan said the country also has 2.7 bln yuan from previous treasury bond  issues which it will also invest in technology upgrade projects this year.      This combined 9.7 bln yuan in spending should stimulate investment of a  total of 120 bln yuan in the projects, he said.      The funds will be aimed at helping state firms improve their product  quality and variety and expand their exports, he said, adding that industries  to receive the funds this year include metallurgy, petrochemicals, textiles  and machinery.      China has used a total of 19.5 bln yuan in treasury bond proceeds to fund  technology upgrade projects over the past two years and this spending  triggered investment of 240 bln yuan in the projects from other sources.      More than 100 of the country's 880 technology upgrade projects had been  completed by end-Feb and the remainder are expected to be finished within the  coming two years, he said.      He said the projects are vital for developing capacity to produce goods  which replace imports and are important for revitalising old state  enterprises such as Anshan Steel Corp.			

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