According to Reuters, the Chinese government plans to issue 3 trillion yuan (approximately 411 billion USD) of special treasury bonds next year. Sources revealed that this issuance scale will set a historical high. This move shows that Beijing is intensifying fiscal stimulus efforts to boost the sluggish economy.
China plans to double the issuance scale compared to this year.
According to sources, China's bond issuance scale in 2025 will increase significantly to 3 trillion yuan, far exceeding this year's 1 trillion. This growth is seen as one of the key measures for the Beijing government to respond to economic challenges, especially at a time when the U.S. is expected to raise tariffs on Chinese imported goods. Currently, this tariff policy may be further strengthened if Trump takes office again in January.
The bonds will be used for consumption and innovation-driven projects.
According to sources, the funds raised this time will be used in multiple areas, including promoting consumption through subsidy programs, assisting companies in upgrading equipment, and investing in innovation-driven high-tech industries. These measures will inject new growth momentum into the Chinese economy to cope with the current downward pressure.
The official response to the news has not yet been made.
The State Council's Information Office, the Ministry of Finance, and the National Development and Reform Commission, involved in this special treasury bond issuance plan, have not responded to this matter. A source familiar with the situation indicated that this plan involves sensitive issues, so it is inconvenient to disclose specific identities.
China's bond yields have risen slightly.
Following the news, the yields of China's 10-year and 30-year government bonds rose by 1 basis point and 2 basis points, respectively. The market reacted enthusiastically to this record bond issuance scale, indicating that investors view it as one of the important measures for the Chinese government to address economic weakness.
The issuance scale exceeds market expectations, said the head of Asia Macro Research at Dahua Bank: 'The central government is currently the only institution with substantial new leverage capacity, so any bond issuance at the central level is seen as a positive signal to support economic growth.'
Special positioning of special treasury bonds
Special treasury bonds, as an unconventional tool, are usually not included in China's annual budget plan. These bonds are mainly used for financing specific projects or policy goals, demonstrating their flexibility and targeting in use.
If this news is true, this record issuance plan demonstrates the Chinese government's determination to deepen borrowing to combat deflationary pressures and highlights its high regard for economic recovery. As the world's second-largest economy faces multiple challenges, it may become one of the turning points in its future economic policy.
This article Reuters: China plans to issue a record 3 trillion yuan special treasury bonds next year first appeared in Chain News ABMedia.