China plans to begin selling bonds worth 1 trillion yuan ($188 billion) on Friday, May 17. This is the fourth such sale in the last 26 years, the last being in 2020. Bloomberg reports this.
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By November, China plans to sell debt totaling 1 trillion yuan ($138 billion) ). This week, China will begin selling the first batch of 30-year bonds worth 40 billion yuan ($3 billion), according to the Ministry of Finance.
20-year and 50-year bonds will be offered from May 24 and June 14 respectively. The securities auctions will continue until the last batch of 30-year bonds goes on sale in November.
China is stepping up fiscal support to help the economy, which is under pressure from the housing crisis and weak consumer confidence. Government spending on infrastructure, which can be financed by bonds, will be key to ensuring China achieves annual growth of around 5%.
Investors reacted positively to the news of the bond sale, and the CSI 300 index, which The main indicator of shares on land, having won back a preliminary loss of 0.9%, closed almost unchanged. Chinese shares in Hong Kong recovered from preliminary losses and rose by 0.6%.
