China to Issue 3 Trillion Yuan ($411 Billion) in Special Treasury Bonds in 2025 to Boost Economy

Dec 24, 2024, 04:15 AM

China's Ministry of Finance (MOF) has announced plans to adopt a more proactive fiscal policy in 2025, as discussed at the national fiscal work conference held from December 23-24. The measures include increasing the fiscal deficit-to-GDP ratio and issuing larger-scale government bonds to stabilize growth. The MOF aims to increase budget deficit and ramp up government bond issuance, with plans to issue 3 trillion yuan ($411 billion) in special treasury bonds next year. These funds will be used for consumer goods and industrial equipment trade-in schemes, among other initiatives. Additionally, the MOF will focus on boosting consumption, supporting a modern industrial system, and enhancing global financial cooperation. Efforts will also be made to prevent and resolve local government debt risks and address payment arrears to enterprises through increased local government special bond funding.