To stimulate the economy, China will issue special bonds worth more than 325 billion USD

China will also deploy policy tools involving taxes and "special funds" to revive the real estate sector.

China's fiscal stimulus package aims to support the economy in general, including the real estate sector. (Source: Royal Global Group)

China will issue special bonds worth 2.3 trillion yuan (US$325.5 billion) over the next three months to stimulate the economy.

China is currently increasing the use of additional treasury bonds and will issue special treasury bonds with longer maturities. In the next three months, Beijing may issue a special bond fund worth a total of 2.3 trillion yuan, Xinhua news agency quoted Finance Minister Lam Fo'an at a press conference on October 12.

The issuance is aimed at supporting the property market, replenishing capital for large state-owned banks and implementing subsidy programs for low-income earners, according to China's top financial official.

Regarding the real estate market, Minister Lam Fo An said that Beijing will deploy other policy tools, including tax policies and "special funds" to revive the sector.

China is rolling out a series of measures to further boost its economic recovery despite seeing positive signs since the Covid-19 pandemic.

The Northeast Asian country has set a target of economic growth of about 5% in 2024. However, recent tightening of real estate controls is causing many real estate businesses to struggle.

Meanwhile, consumption, which the Chinese government has identified as a key growth driver, remains weak across the economy. Policymakers have announced a series of stimulus measures, including interest rate cuts and loosening home-buying restrictions.

On the same day, Xinhua reported that China's major state-owned commercial banks have announced detailed measures to adjust interest rates on outstanding mortgage loans, in line with the country's central bank's policy to stabilize the real estate market.

According to the announcements of these banks, the adjustment will be implemented starting from October 25. Among them are Industrial and Commercial Bank of China, Agricultural Bank of China, Bank of China and China Construction Bank.

In September, the People's Bank of China (PBOC, the central bank) asked commercial banks to lower interest rates on home mortgage loans to help ease the financial burden on property buyers.

Source: https://baoquocte.vn/kich-thich-kinh-te-trung-quoc-se-phat-ha-nh-trai-phieu-dac-biet-tri-gia-hon-325-ty-usd-289815.html