China’s special Covid-19 treasury bond disappoints in size, sparks debate on central bank’s role

By Addison Gong
28 May 2020

China is reviving the issuance of its special treasury bonds, a funding tool it has not used since the financial crisis. But bankers were underwhelmed by the Rmb1tr ($140bn) size target — and are also hoping for clarity on how the ‘anti-pandemic’ deal will be financed. Addison Gong reports.

China plans to increase the budget deficit for 2020 by Rmb1tr, and issue special Covid-19 treasury bonds, premier Li Keqiang said when delivering the government work report at the National People’s Congress at the end of last week. It also assigned a Rmb3.75tr quota to special purposes ...

Already a subscriber?

Continue reading this article

Try full access to GlobalCapital

Free trial