China to Issue Special Government Bonds Worth 600 Trillion Won Next Year to Stimulate Economy

Chinese authorities will issue a record-breaking special government bond worth 3 trillion yuan (approximately 598 trillion won) next year to stimulate the economy.

According to local media such as Economic Daily and Economic Times on the 24th, Chinese authorities have decided to triple the issuance of special government bonds from 1 trillion yuan this year to 3 trillion yuan next year. This is the largest annual special bond issuance ever, equivalent to 2.4% of last year's Chinese Gross Domestic Product (GDP).

The funds raised through the special government bonds will be used for consumption promotion programs to boost domestic demand, replacement of aging equipment in enterprises, and financial investment resources for the development of advanced industries.

Specifically, the funds will be used for new programs such as subsidies for trade-in purchases of durable consumer goods like automobiles and home appliances, and equipment upgrade subsidy programs for enterprises. They will also be invested in major programs such as farmland development, key security capacity building, and infrastructure like railways, airports, and construction.

In particular, 1 trillion yuan is reportedly allocated to advanced manufacturing industries referred to as "new productive forces," including electric vehicles, robots, semiconductors, and clean energy.

Earlier, the Chinese leadership decided to raise the fiscal deficit target for 2025 to 4% of GDP, up by 1.0 percentage point, and at the Central Economic Work Conference held over two days starting on the 11th, they announced a policy stance to pursue more proactive fiscal policies.

This content was produced with the assistance of AI translation services.