Chinese policymakers plan to sell a record 3 trillion yuan (US$411.1 billion) of special treasury bonds next year, as the government seeks to boost the slowing economy, Reuters reported yesterday.
Funds raised from the bonds would be used to support consumption subsidies, business equipment upgrades, and investments in key technology and advanced manufacturing sectors, according to Reuters, which cited two unnamed sources.
Some of the proceeds would also be used to inject capital into large state banks, it said.
Photo: Reuters
Greater fiscal stimulus would help the world’s second-largest economy buffer against expected headwinds from the administration of US president-elect Donald Trump, which has threatened to impose steep tariffs on Chinese imports.
China’s CSI 300 equity benchmark gained about 1 percent after the report, before paring gains. Chinese government bonds extended losses, with the 10-year yield rising four basis points to 1.72 percent from a record-low close in the previous session.
China’s special sovereign bonds are issued for specific purposes — such as financing COVID-19 pandemic-related spending — and therefore are not counted toward the headline budget deficit. The size of the potential bond sales would exceed the 1 trillion yuan sold this year and become the highest on record.
“It’s bigger than our expectations and shows the government’s willingness to shore up growth through a more sizable fiscal stimulus,” Societe Generale SA China economist Michelle Lam (林雪潔) said.
About 1.3 trillion yuan of the funds to be raised would be used to support a consumer product and business equipment trade-in program, as well as major construction projects, Reuters said.
Apart from that, more than 1 trillion yuan would be used to invest in “new productive forces,” which stand for advanced manufacturing sectors such as electric vehicles, Reuters reported.
The rest of the funds would be used to recapitalize large state banks as their profit margins are narrowing, it said.
China would “expand the magnitude of fiscal spending and accelerate the spending pace,” the Chinese Ministry of Finance said yesterday in a statement following a two-day national conference on fiscal work next year.
Taichung reported the steepest fall in completed home prices among the six special municipalities in the first quarter of this year, data compiled by Taiwan Realty Co (台灣房屋) showed yesterday. From January through last month, the average transaction price for completed homes in Taichung fell 8 percent from a year earlier to NT$299,000 (US$9,483) per ping (3.3m²), said Taiwan Realty, which compiled the data based on the government’s price registration platform. The decline could be attributed to many home buyers choosing relatively affordable used homes to live in themselves, instead of newly built homes in the city’s prime property market, Taiwan Realty
The government yesterday approved applications by Alphabet Inc’s Google to invest NT$27.08 billion (US$859.98 million) in Taiwan, the Ministry of Economic Affairs said in a statement. The Department of Investment Review approved two investments proposed by Google, with much of the funds to be used for data processing and electronic information supply services, as well as inventory procurement businesses in the semiconductor field, the ministry said. It marks the second consecutive year that Google has applied to increase its investment in Taiwan. Google plans to infuse NT$25.34 billion into Charter Investments Ltd (特許投資顧問) through its Singapore-based subsidiary Fructan Holdings Singapore Pte Ltd, and
JET JUICE: The war on Iran’s secondary effects have seen fuel prices skyrocket, knocking flight schedules down to earth in return as airlines struggle with costs Airline passengers should brace for more irritation in the next few months as carriers worldwide cancel flights and ground planes to cope with stratospheric increases in jet-fuel prices. Dutch flag carrier KLM is the latest company to cut its schedule, saying on Thursday that it would scrap 80 return flights at Amsterdam’s Schiphol Airport in the coming month. That puts it in the same league as United Airlines Holdings Inc, Deutsche Lufthansa AG and Cathay Pacific Airways Ltd, which have all pruned itineraries to mitigate costs. Global capacity for next month has been reduced by about 3 percentage points, with all
The US said it plans to help build a first-of-its-kind industrial hub in the Philippines to boost production of inputs crucial to US supply chains. The 4,000-acre hub is intended to be “a purpose-built platform for allied manufacturing” and “an investment acceleration hub where the specific industrial activities are shaped by market demand,” the US Department of State said on Thursday. The project — touted as an “economic security zone” — would be within the Luzon Economic Corridor, a flagship economic project backed by the US and Japan on the main Philippine island. The project was also described as “the first artificial intelligence
RSS