China unveils $411b stimulus via bonds next year

Chinese authorities will issue a record-high 3 trillion-yuan ($411 billion) worth of special treasury bonds next year to boost the economy, Reuters reported citing two sources familiar with the matter.

In 2025, China plans to significantly increase sovereign debt issuance, up from this year’s 1 trillion yuan. This move is aimed at mitigating the impact of anticipated higher US tariffs on Chinese imports when Donald Trump takes office in January.

The sources stated that the funds will be used to enhance consumption through subsidy programmes, upgrade equipment for businesses, and support investments in innovation-driven advanced sectors, among other initiatives.

The State Council Information Office, responsible for managing media inquiries for the government, the finance ministry, and the National Development and Reform Commission (NDRC), didn’t promptly reply to a request for comment from Reuters.

The upcoming special treasury bond issuance next year is set to be the biggest ever, highlighting Beijing’s readiness to increase debt levels further to combat deflationary pressures in the world’s second-largest economy.

China typically does not incorporate ultra-long special bonds into its yearly budget proposals, viewing them as a unique tool to generate funds for particular projects or policy objectives when necessary.

Attribution: Reuters

Subediting: M. S. Salama