$Hang Seng Index (800000.HK)$ Finance | Reuters: China has a...

$Hang Seng Index (800000.HK)$ Finance | Reuters: China has agreed to issue a record-breaking 3 trillion yuan of special national debt next year.

Reuters cited sources as reporting that the Chinese authorities have agreed to issue a total of 3 trillion yuan (RMB, same below) of special national debt next year, the largest scale ever, to increase fiscal stimulus and boost the economy.

Sources pointed out that as part of next year's plan, China will raise approximately 1.3 trillion yuan through the issuance of special national bonds to support the 'Two Heavy' and 'Two New' plans. 'Two Heavy' refers to the implementation of major national strategic projects and the construction of security capabilities in key areas, while 'Two New' refers to promoting a new round of large-scale equipment upgrades and consumer goods replacement.

The report also stated that a considerable portion of the funds raised from the special national bonds in the 2025 plan will be used to support the development of new quality production capacities, with the amount allocated to this area possibly exceeding 1 trillion yuan.

In addition, some of the funds raised through the issuance of special national bonds are intended to be used to recapitalize large state-owned banks to supplement their core capital.

The State Council Information Office handling media inquiries from the Chinese government, Ministry of Finance, and the National Development and Reform Commission did not respond to inquiries from Reuters.
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