According to media reports, the Bank of China has initiated the sale of Chinese government bonds worth hundreds of billions. picture alliance/Hans Lucas/Romain Costaseca
China is preparing a major sale of government bonds.
According to an announcement by the Ministry of Finance, bonds worth the equivalent of around 128 billion euros are to be sold.
As the “FT” reports, the Bank of China is currently preparing appropriate steps.
Chinas The economy is growing, but it is not growing as quickly or as strongly as the Chinese government would like. Factors such as the ailing real estate sector and high youth unemployment continue to complicate economic performance.
A few weeks ago, China’s government announced the sale of government bonds. It is now clear in what dimensions this sale will take place.
Price for China bonds is still to be determined
The Chinese Ministry of Finance announced in a statement that it wanted to sell government bonds worth the equivalent of around 128 billion euros. China wants to use the proceeds to finance further economic subsidies in “critical sectors”.
According to the Ministry of Finance, the bond sale is scheduled to take place between May and November. The first government bonds over 30 years are scheduled to go on sale on Friday; how many exactly is not specified. 20-year bonds will go on sale from May 24th and 50-year bonds from June 14th. According to the „Financial Times“ The Bank of China has already asked brokers to set sales prices.
Bond sales to “modernize the economy”
“The bond sale is a crucial part of concerted efforts to support significant, urgent and ambitious projects that are essential to modernizing the economy,” Liu Sushe, deputy head of the National Development and Reform Commission, said in a public briefing in mid-April .
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