The Chinese government is considering the issuance of up to 6 trillion yuan in treasury bonds over the next three years as part of its fiscal stimulus strategy aimed at invigorating the economy, according to a report by Caixin Global released late on Monday.
These funds are anticipated to be partly allocated towards assisting local governments in managing their off-balance-sheet debts, according to sources familiar with the situation.
Over the past weekend, the Ministry of Finance promised increased assistance to the property sector and to heavily indebted local governments. In the preceding week, the National Development and Reform Commission announced that an additional 1 trillion yuan of ultra-long special treasury bonds had already been allocated to specific projects and local governments, with plans to continue issuing these bonds into 2025.
