China should and will accelerate the issuance and use of government bonds

<p>Over the weekend China's new finance minister Lan Foan was cited ass saying China will accelerate the issuance and use of government bonds.</p><p>The report came via state-run news agency Xinhua.</p><p>The fin min added:</p><ul><li>finance ministry will steadily promote the resolution of local government debt risk and increase efforts to better leverage the role of special bonds to boost the economy</li><li>will continue to implement a proactive fiscal policy</li><li>focus on improving efficiency</li><li>better play the effectiveness of fiscal policy</li><li>some new local government debt quotas for 2024 have been issued in advance to reasonably ensure local financing needs</li></ul><p>Alos from China, Zhang Bin, deputy director of the Institute of World Economics and Politics at The Chinese Academy of Social Sciences (CASS) says China should </p><ul><li>expand government debt</li><li>boost credit</li></ul><p>in order to drive the growth of financial assets in society, which in turn will increase nominal income and help restore consumption in the short term.</p><p>Sounds good, I wonder how quickly Chinese people will respond to … more debt.</p>

This article was written by Eamonn Sheridan at www.forexlive.com.