China is increasing financial support to help an economy under pressure from the housing crisis and weak consumer confidence.
China plans to start selling bonds worth 1 trillion yuan ($188 billion) on May 17. It will be the fourth such sale in the past 26 years, the last in 2020. Bloomberg reported.
It was noted that in November, China plans to sell debt totaling 1 trillion yuan ($138 billion). The sale of the first batch is scheduled for this week;
The 20-year and 50-year bonds will be offered on May 24 and June 14, respectively. Auctions for the sale of securities will continue until the last batch of 30-year bonds are sold in November.
China, led by Xi Jinping, has been known to boost fiscal support to help the economy, which is under pressure from the housing crisis and weak consumer confidence. Infrastructure spending, which can be financed by bonds, will be key to ensuring that China can achieve annual growth rates of around 5%.
Investors responded positively to news of the bond sale, with the CSI 300 index, a key measure of onshore equities, recovering an early 0.9% loss to close almost unchanged. Chinese shares in Hong Kong pared early losses to rise 0.6%.
It was previously reported that China’s GDP grew 5.3% year-on-year in the first quarter, above the government’s 2024 growth target of around 5%.
Let’s remember that China began to protect the domestic market from coal, which rushed there after the introduction of the European embargo, and to prevent cooperation with companies that fell under US sanctions.
Source: korrespondent
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