China Plans Record $411 Billion Special Treasury Bond Issuance in 2025 to Boost Economy
Dec 24, 2024, 07:11 AM
Chinese authorities have agreed to issue 3 trillion yuan ($411 billion) in special treasury bonds in 2025, marking the highest issuance on record. This move is part of Beijing's strategy to ramp up fiscal stimulus and revive the faltering economy. The funds will be used to support various initiatives, including boosting consumption through subsidy programs, facilitating equipment upgrades by businesses, and funding investments in innovation-driven sectors such as electric vehicles, robotics, semiconductors, and green energy. Additionally, a portion of the proceeds will be allocated to recapitalize large state banks. This plan represents a significant increase from the 1 trillion yuan issued in the current year and comes as Beijing prepares to mitigate the impact of expected U.S. tariffs on Chinese imports.
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Local government debt resolution • 25%
Consumer goods trade-in schemes • 25%
Industrial equipment trade-in schemes • 25%
Other • 25%
Stock market rises by over 10% • 25%
Stock market changes by less than 5% • 25%
Stock market declines • 25%
Stock market rises by 5-10% • 25%
Consumer goods trade-in schemes • 25%
Industrial equipment trade-in schemes • 25%
Development of new productive forces • 25%
Recapitalization of state-owned banks • 25%
Moderate • 25%
Conservative • 25%
Aggressive • 25%
Other • 25%
Other strategic economic measures • 25%
Negotiates a trade deal with the U.S. • 25%
Imposes retaliatory tariffs on U.S. goods • 25%
Increases domestic subsidies to affected sectors • 25%
Significant increase in GDP growth • 25%
Substantial improvement in employment rates • 25%
Major boost in industrial production • 25%
Other significant economic impact • 25%