China plans to issue bonds to boost economy

China is considering one trillion yuan ($139 billion) of new debt issuance under a special sovereign bond plan, as authorities seeks money to finance intensifying efforts to shore up the country’s economy, Bloomberg reported on Tuesday.

The proposal would involve the sale of ultra-long sovereign bonds to fund projects related to food, energy, supply chains and urbanisation, Bloomberg cited people familiar with the matter.

This is the fourth such sale in the past 26 years, as the most recent sale was in 2020, when authorities issued one trillion-yuan worth of those bonds to pay for pandemic response measures.