CN: "Significant Expansion of Government Debt for Economic Stimulus... Issuance of Special Government Bonds" (Comprehensive)

Full Effort to Achieve 5% Economic Growth Target

China is expected to significantly expand government debt and issue special government bonds to strengthen the capital of state-owned banks in order to stimulate the economy.

Chinese President Xi Jinping Photo by Yonhap News

Lan Foan, China's Minister of Finance, stated at a press conference hosted by the State Council Information Office on the 12th that "the central government has relatively large room to increase debt," revealing such plans.

The Chinese government is making every effort to achieve this year's economic growth target of around 5%. Recently, it has announced a series of measures including a 0.5 percentage point cut in the reserve requirement ratio (RRR), the supply of 1 trillion yuan (approximately 190 trillion won) in long-term liquidity, reductions in policy interest rates and real estate loan rates, and the injection of funds to stabilize the stock market.

There is also interest in whether China will introduce additional measures. The U.S. Wall Street Journal (WSJ) reported on the 10th that the Standing Committee of the National People's Congress (NPC), scheduled to be held at the end of this month, is expected to reveal details of the series of economic stimulus measures introduced by China.