Reuters: China plans to issue a record-breaking 3 trillion yuan special national bonds next year.

According to Reuters, the Chinese government plans to issue a special national debt of 3 trillion renminbi (about 411 billion U.S. dollars) next year, and sources revealed that the scale of this issuance will reach a historical high. This move shows that Beijing is increasing fiscal stimulus to boost the sluggish economy.

China plans to double the size of the issuance compared to this year

According to sources, China's national debt issuance scale in 2025 will increase significantly to 3 trillion yuan, far exceeding this year's 1 trillion yuan. This growth is considered one of the key measures for the Beijing government to deal with economic challenges, especially in the face of the expected increase in tariffs on Chinese imported goods by the United States. Currently, this tariff policy may be further strengthened due to Trump's re-election in January.

Bonds will be used for consumption and innovation-driven

According to sources, the funds raised will be used in a number of areas, including promoting consumption through subsidy programs, assisting companies to upgrade equipment, and investing in innovation-driven high-tech industries. These measures will inject new growth impetus into China's economy to cope with the current downward pressure.

The official has not responded to the news yet.

The Chinese State Council Information Office, Ministry of Finance, and National Development and Reform Commission, which are involved in the special national debt issuance plan, have not yet responded to the matter. A knowledgeable source familiar with the situation said that this plan involves sensitive issues, so it is inconvenient to disclose specific identities.

Slight increase in bond yield

After the news came out, the yields on China's 10-year and 30-year government bonds rose by 1 basis point and 2 basis points, respectively. The market's enthusiastic response to this record-breaking issuance of government bonds indicates that investors see it as one of the important measures taken by the Chinese government to address economic weakness.

"The scale of this issuance exceeds market expectations," said the head of macro research at Dahua Bank Asia, "The central government is currently the only institution with the substantial ability to increase leverage, so any central-level bond issuance is seen as a positive signal supporting economic growth."

Special positioning of special national bonds

As an unconventional tool, special government bonds are usually not included in China's annual budget plan. These bonds are mainly used for financing specific projects or policy objectives, demonstrating their flexibility and targeting.

Assuming this is true, the record issuance program demonstrates the Chinese government's determination to deepen borrowing to counter deflationary pressures and underscores the importance it places on economic recovery. At a time when the world's second-largest economy faces multiple challenges, it may become one of the turning points of its future economic policy.

This article by Reuters: China plans a record 3 trillion yuan of People's Coin special treasury bonds next year first appeared in Chain News ABMedia.