I posted on this yesterday:

And more detail:

And the stimulus doesn't stop there, also from yesterday:

Resulting in:

Confirming now that 1 trillion yuan bond issuance was approved by the sixth session of the Standing Committee of the 14th National People's Congress (NPC)

  • this is China's top legislature
  • the bond issuance has been categorized as special treasury bonds
  • half of the quota will be used this year and half in the new year

China has already issued over 7.5 trillion yuan in bonds in the first three quarters. The extra 1 trillion come on top of this. The amount is quite large in comparable terms

  • in 2020 China issued 1 trillion yuan of special treasury bonds to fund stimulus spending and prop up the economy during the first year of the pandemic
  • in 2022, special bond issuance totalled 750 billion yuan

Analysts are hoping that extra issuance will boost the economy, demand and market confidence.

china yuan notes 03 May 2023