Beijing, China, Monday, May 20, 2024 – In a bid to bolster its flagging economy, China launched a significant stimulus effort on Friday, May 17, 2024, with the sale of 1 trillion Yuan ($138 billion) in ultra-long government bonds. 1
Reuters reported on May 13, citing sources, that the sale will include 300 billion yuan of 20-year bonds, 600 billion yuan of 30-year bonds, and 100 billion yuan of 50-year bonds.
The finance ministry previously announced that 30-year special bonds will be sold in 12 tranches from May 17 to Nov. 15.
It said 20-year bonds will be sold in seven batches starting May 24, while 50-year bonds will be issued in three tranches starting May 17.
The Ministry of Finance announced the upcoming bond sale, the largest of its kind in recent years.
The bonds will have maturities of 20, 30, and even 50 years, aiming to attract long-term investment and provide a steady stream of funding for infrastructure projects and other key sectors.
This marks the fourth such sale in the past 26 years, with the most recent occurring in 2020.
The proceeds from the bond sale are expected to be used to finance initiatives that strengthen China’s economic foundation and support long-term growth prospects.
- reuters.com: https://www.reuters.com/breakingviews/china-stimulus-starts-with-bond-not-bang-2024-05-17/[↩]
