Chinese officials are considering a plan to issue an additional 1 trillion yuan in bonds to finance infrastructure projects. This additional bond issuance could significantly exceed the predetermined debt ceiling of 3% for this year's budget.
News sources suggest that an official announcement could come later this month, but note that government plans can change. This move comes at a time when the Chinese government has avoided extensive fiscal stimulus despite deflationary pressures.
Bruce Pang, Chief Economist at Jones Lang Lasalle Inc., commented on this new financing move, stating, "The additional bond issuance aims to accelerate a stronger recovery, provide additional policy support, and allocate more resources."
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