Hibapress
China on Saturday unveiled a series of fiscal measures aimed at boosting economic growth, including the issuance of special Treasury bonds totaling 2.3 trillion yuan (326 billion U.S. dollars) over the next three months.
“In the next three months, a total of 2.3 trillion yuan of special bonds can be used,” said Chinese Finance Minister Lan Fo’an.
“There is still a relatively large margin for China to issue debt,” he added at a conference in Beijing, specifying that other measures would be put in place this year.
The move is part of a strategy to increase public debt issuance to provide subsidies to low-income households, support the ailing real estate market and replenish the capital of large state commercial banks.
The world’s second largest economy, China is facing a slowdown in growth which has prompted the authorities to take significant recovery measures.
Among the main measures set out are the reduction in the interest rate on medium-term loans granted to financial institutions, from 2.3% to 2%, as well as a reduction in the bank reserve requirement rate (RRR). , which determines the share of deposits that they must keep.
The impact of these announcements was felt on the Asian giant’s financial markets, with Chinese stocks reaching their highest levels in two years.
However, this initial euphoria was followed by a decline reflecting investors’ caution in the face of the scale of economic challenges.
