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Fresh Stimulus Spending Under Consideration, With Special Bond Plan Tapped

CHINA
  • Bloomberg cites sources in reporting that China are weighing more stimulus with $139bln of special bonds.
  • As the piece notes, the issuance of these special bonds would be the fourth such sale since the launch of the special sovereign bond plan 26 years ago. Sale would be ultra-long and specifically fund food, energy, supply chains and urbanization, according to sources.
  • Last sale was in 2020 to fund pandemic response measures, where another CNY 1trl was launched, so this tranche would be of the same size.
  • "The discussions are ongoing and the plan could be changed"

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