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Another China stimulus?
China mulls record $560 bil special bonds, Reuters says
China mulls record $560 bil special bonds, Reuters says
China’s policymakers plan to sell a record 3 trillion yuan of special treasury bonds in 2025.
China’s policymakers plan to sell a record 3 trillion yuan ($560 billion) of special treasury bonds in 2025, Reuters reported on Tuesday (Dec 24), a move aimed at bolstering the slowing economy.
The plan would be a sharp increase from this year’s 1 trillion yuan and be used to support consumption and investments as well as recapitalising large state banks, according to Reuters, citing two unnamed sources.
The reported fiscal measures come as China is mapping out its economic plans for next year, with top leaders hinting at bolder stimulus as Beijing faces tariff threats from the incoming Trump administration. Policymakers have pledged to expand the headline deficit and boost bond sales amid efforts to strengthen fiscal policy and boost consumption.
China’s CSI 300 equity benchmark gained 1.3%. Chinese government bonds extended losses, with the 10-year yield rising four basis points to 1.72% from a record-low close in the previous session. The one-year rate surged 23 basis points.
“It’s bigger than our expectations and shows the government’s willingness to shore up growth through a more sizable fiscal stimulus,” said Michelle Lam, Greater China economist at Societe Generale SA.
She added, however, that part of the reported sum is intended for bank recapitalization and should not be viewed as additional demand measures. Bloomberg previously reported China was considering injecting as much as 1 trillion yuan of capital into its biggest state banks to increase their capacity to support the struggling economy.
The State Council Information Office didn’t immediately respond to a faxed request for comment.
China mulls record $560 bil special bonds, Reuters says
China’s policymakers plan to sell a record 3 trillion yuan of special treasury bonds in 2025.
China’s policymakers plan to sell a record 3 trillion yuan ($560 billion) of special treasury bonds in 2025, Reuters reported on Tuesday (Dec 24), a move aimed at bolstering the slowing economy.
The plan would be a sharp increase from this year’s 1 trillion yuan and be used to support consumption and investments as well as recapitalising large state banks, according to Reuters, citing two unnamed sources.
The reported fiscal measures come as China is mapping out its economic plans for next year, with top leaders hinting at bolder stimulus as Beijing faces tariff threats from the incoming Trump administration. Policymakers have pledged to expand the headline deficit and boost bond sales amid efforts to strengthen fiscal policy and boost consumption.
China’s CSI 300 equity benchmark gained 1.3%. Chinese government bonds extended losses, with the 10-year yield rising four basis points to 1.72% from a record-low close in the previous session. The one-year rate surged 23 basis points.
“It’s bigger than our expectations and shows the government’s willingness to shore up growth through a more sizable fiscal stimulus,” said Michelle Lam, Greater China economist at Societe Generale SA.
She added, however, that part of the reported sum is intended for bank recapitalization and should not be viewed as additional demand measures. Bloomberg previously reported China was considering injecting as much as 1 trillion yuan of capital into its biggest state banks to increase their capacity to support the struggling economy.
The State Council Information Office didn’t immediately respond to a faxed request for comment.
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