China Mulls $139 Billion in Special Bonds to Fund Infrastructure, Bolster Economy
• China considering $139 billion in new debt issuance through special sovereign bonds to fund projects related to food, energy, supply chains, and urbanization • Rare form of debt issuance, only done 4 times in past 26 years, used during financial crises • Aims to shift spending from local governments to central authorities to support struggling economy • Bonds would be ultra-long term, repaid over decades, lowering short-term repayment pressure • Half of similar bonds issued in 2022 still being allocated, more fiscal support expected in 2023 budget