MNI POLICY: China To Issue CNY100 Bln Special Treasury Bonds

     BEIJING (MNI) - China will Thursday issue two special anti-Covid-19

treasury bonds totalling CNY100 billion, according to a statement by the

Ministry of Finance. 

     The durations of the notes are 5- and 7-years, respectively, with a face

value of CNY50 billion on each. The coupon will be fixed via biding on June 18

and distributed from June 23. 

     This sale aims to raise funds for pandemic prevention and economic

development, the Ministry said.

     The issuance comes as coronavirus reappeared in Beijing, with some areas in

the city adopting "wartime" measures as the capital raced to contain the spread.

     China said in its recent Government Work Report that it plans to issue CNY1

trillion special treasury bonds and raise the fiscal deficit by CNY1 trillion to

CNY3.76 trillion this year. These CNY2 trillion will be given to local

authorities in safeguarding employment, people's basic livelihoods, businesses,

tax and fee reductions, rent and interest rate cuts along with expanding

consumption and investment. 

     Unlike general treasury bonds, these bonds won't be included to national

deficit calculations.

--MNI Beijing Bureau; +86 (10) 8532-5998; email: wanxia.lin@marketnews.com

--MNI London Bureau; tel: +44 203-586-2225; email: les.commons@marketnews.com

[TOPICS: M$A$$$,M$Q$$$,M$$FI$,MGQ$$$]