ICYMI – China will issue an additional 1 trillion yuan ($137 bn) in treasury bonds in Q4

<p>I posted on this yesterday:</p><ul><li><a href="https://www.forexlive.com/news/china-set-to-approve-circa-us137billion-in-additional-sovereign-debt-issuance-on-tuesday-20231023/" target="_blank" data-article-link="true">China set to approve circa US$137billion in additional sovereign debt issuance on Tuesday</a></li></ul><p>And more detail:</p><ul><li><a href="https://www.forexlive.com/news/icymi-china-set-to-approve-1-trln-yuan-in-additional-sovereign-debt-issuance-today-20231024/" target="_blank" rel="follow" data-article-link="true">ICYMI – China set to approve 1 trln yuan in additional sovereign debt issuance today</a></li></ul><p>And the stimulus doesn't stop there, also from yesterday:</p><ul><li><a href="https://www.forexlive.com/news/icymi-chinas-sovereign-wealth-fund-bought-etfs-to-prop-up-puking-stock-market-20231023/" target="_blank" rel="follow" data-article-link="true">ICYMI – China's sovereign wealth fund bought ETFs to prop up puking stock market</a></li></ul><p>Resulting in:</p><ul><li><a href="https://www.forexlive.com/news/china-stimulus-signals-boost-chinese-stocks-20231024/" target="_blank" rel="follow" data-article-link="true">Stimulus boosts Chinese stocks, eyes on the upcoming session</a></li></ul><p>Confirming now that 1 trillion yuan bond issuance was approved by the sixth session of the Standing Committee of the 14th National People's Congress (NPC)</p><ul><li>this is China's top legislature</li><li>the bond issuance has been categorized as special treasury bonds</li><li>half of the quota will be used this year and half in the new year</li></ul><p>China has already issued over 7.5 trillion yuan in bonds in the first three quarters. The extra 1 trillion come on top of this. The amount is quite large in comparable terms</p><ul><li>in 2020 China issued 1 trillion yuan of special treasury bonds to fund stimulus spending and prop up the economy during the first year of the pandemic</li><li>in 2022, special bond issuance totalled 750 billion yuan</li></ul><p>Analysts are hoping that extra issuance will boost the economy, demand and market confidence.</p>

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