China issues hundreds of billions of dollars in bonds to revive economy

China is about to issue special bonds to stimulate the economy - Photo: CHINA BRIEFING

Xinhua News Agency quoted Finance Minister Lam Fo'an at a press conference on October 12 as saying that China is currently increasing the use of supplementary treasury bonds, and will issue special treasury bonds with longer maturities.

China may issue special bond funds worth a total of 2.3 trillion yuan in the next three months.

The issuance is aimed at supporting the property market, replenishing capital for large state-owned banks and implementing subsidy programs for low-income earners, according to China's top financial official.

Regarding the real estate market, the finance minister said the country will deploy other policy tools, including tax policies and "special funds" to revive the sector.

China is stepping up measures to further strengthen its economic recovery, despite seeing positive signs since the COVID-19 pandemic.

China has set a target of economic growth of around 5% in 2024. However, China's recent tightening of real estate controls is causing many real estate businesses to struggle.

Meanwhile, consumption, which the Chinese government has identified as a key growth driver, remains weak across the economy. Chinese policymakers have announced a series of stimulus measures, including interest rate cuts and loosening home-buying restrictions.

On the same day, Xinhua News Agency reported that China's major state-owned commercial banks on October 12 announced detailed measures to adjust interest rates on outstanding mortgage loans, in line with the country's central bank's policy to stabilize the real estate market.

According to the announcements of these banks, the adjustment will be implemented starting from October 25. Among them are Industrial and Commercial Bank of China (international trading name is Industrial and Commercial Bank of China), Agricultural Bank of China, Bank of China and China Construction Bank.

In September, the People's Bank of China (PBOC, China's central bank) asked commercial banks to lower interest rates on home mortgage loans, to help ease the financial burden on property buyers.

Source: https://tuoitre.vn/trung-quoc-phat-hanh-trai-phieu-hang-tram-ti-do-de-vuc-day-kinh-te-20241012115339576.htm