China Additional Fiscal Stimulus Possible In H2-Securities Journal

China fiscal authorities may issue special treasury bonds or front load part of the quota of 2023 local government special bonds in the second half of this year if domestic and overseas economic headwinds maintain strong, China Securities Journal reported Wednesday. Considering both companies and households are reluctant to expand debt loads, the government has to add leverage to boost the economy, said Zhang Jun, economist with Morgan Stanley. He suggested the special treasury bonds could focus on small and medium-sized private companies and households hit by the pandemic to shore up employment.