China to Issue $139B in Special Bonds to Fund Stimulus Projects

• China plans to issue 1 trillion yuan ($139 billion) of ultra-long special central government bonds this year to boost fiscal stimulus for the economy • This is only the 4th such issuance in 26 years, with the most recent in 2020 to fund pandemic response • The bonds will help finance major national strategies and building security capacity in key areas • Local governments will also be allowed to sell 3.9 trillion yuan in new special bonds this year • The moves signal a focus on using fiscal policy to support China's economy, which faces pressures from deflation, property crisis, and dampened consumer confidence