A person familiar with the matter revealed that China will approve the total value of the issuance slightly higher than 1 trillion yuan (approximately S $ 186.8 billion) of national debt on Tuesday (October 24) to stimulate infrastructure expenditure to boost the economy.
Reuters on Monday (23rd) quoted three people familiar with the matter reported that the meeting of the Standing Committee of the National People's Congress of China will approve the issuance of the Treasury bond on Tuesday, and will be announced as soon as the day.
People familiar with the matter revealed that nearly half of the funds raised by the issuing bonds will be used for water conservancy and flood control projects, and the remaining funds will be mainly used for post -disaster reconstruction and high -standard farmland construction.
Reuters said this measure marks the change of Beijing's fiscal policy position.Despite the continued risk of rejuvenation such as the real estate crisis and the pressure of shrinkage, the Chinese government has now avoided the Chinese government to avoid taking radical fiscal stimulus measures to boost the economy.
Bloomberg said that the issuance of additional national bonds may make this year's fiscal deficit rate higher than the 3%limit set in March.In order to curb financial risks, China has always worked hard to control the fiscal deficit rate ratio of not more than 3%.However, with the slowdown of economic growth, more and more government -related think tanks and economists from foreign -funded institutions have called on the Chinese government to relax the restrictions of deficit rates in order to cope with the continuous slowdown economy.
