Would You like a feature Interview?
All Interviews are 100% FREE of Charge
China will begin selling bonds this week to shore up its struggling economy.
Ministry of Finance Said It will issue 40 billion yuan ($5.5 billion) worth of 30-year sovereign bonds on Friday, the first of several sales aimed at raising a total of 1 trillion yuan ($138 billion).
The Chinese government announced plans to start selling super-long-term government bonds in March. Premier Li Qiang said at the time that the funds would be used for “key national strategies and security capacity building in key areas.”
both bloomberg and financial times newspaper reported the bond sale amount ahead of Monday’s announcement, citing anonymous sources.
This is the first time since 2020 that the Chinese government has increased its debt by selling long-term bonds, and the fourth time in the past 26 years.
They are trying to reignite an economy that has been stumbling since the pandemic as policymakers grapple with deflation and stagnant growth.
The world’s second-largest economy is also suffering from an ongoing real estate market crisis, which has led to the collapse of major developers such as Evergrande and Country Garden.
When Li announced the sale of long-term bonds in March, he warned that China’s economy faced significant risks but still set a 5% growth target. This number was higher than many forecasters expected.
Mr. Li, who ranks second in China after Xi Jinping, said, “The foundations for continued recovery and improvement of our country’s economy are weak, including insufficient demand, overcapacity in some industries, weak social expectations, and many risks that remain.” It’s still not strong.” government.