China Announces Historic $411 Bn Bond Issuance

China is planning to issue a record amount of treasury bonds totalling three trillion yuan (approximately $411 bn for 2025, according to sources from Reuters.

The funds will be allocated to stimulate the economy and boost domestic demand. The government intends to expand consumption subsidy programs, support industrial modernization and recapitalise major banks.

The biggest assistance will be directed toward companies involved in semiconductor production, electric vehicle assembly and infrastructure development.

Chinese authorities anticipate that these unprecedented financial injections will help combat deflation and the stagnation of domestic demand. They aim to partially mitigate the potential impact of a new trade war with the United States, as President-elect Donald Trump has promised to impose tariffs of up to 60% on Chinese exports.

To support the economy, the Chinese government is prepared to increase the budget deficit to a record 4% of GDP.

Journalists have yet to receive official comments from the Chinese government. Previously, the authorities only reported on certain benefits and exchange programs for consumer goods and industrial equipment.

Kursiv Uzbekistan also reported that in September of this year, shares of Chinese companies rose following the announcement of measures to support the economy.