China on Track to Hit Record $1.6 Trillion in Bond Issuances This Year Despite Some Liquidity Hiccups
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China has issued 9.6 trillion yuan of government bonds so far in 2023, against an estimated annual target of 11.1 trillion yuan.
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This year's issuance plan, a record amount, includes 1 trillion yuan of additional bonds approved for disaster relief and climate projects.
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The bond market has mostly taken the deluge of bonds in stride, thanks to PBOC rate cuts and liquidity injections.
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But there have been some hiccups, like a brief liquidity squeeze in October.
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Policymakers don't see an imminent need for further reserve requirement ratio cuts given PBOC's liquidity management.