Beijing, 5 Mar (ZXS) -- China's proactive fiscal policy has brought out new tools. This year's work report proposes that starting from this year, it is planned to issue ultra-long-term special treasury bonds for several consecutive years, which will be specially used for the implementation of major national strategies and security capacity building in key areas, and 1 trillion yuan (RMB, the same below) will be issued this year.
Special government bonds are not unfamiliar. For example, in 2020, China issued 1 trillion yuan of special anti-epidemic treasury bonds. Experts believe that there are at least three special features of the ultra-long-term special treasury bonds to be issued.
On March 5, the Second Session of the 14th National People's Congress opened at the Great Hall of the People in Beijing. (*From China News Service).
One is the special time. In terms of the maturity of the bond itself, "ultra-long-term" generally means that the issuance period is not less than 10 years. China has previously issued government bonds with maturities ranging from 10 years, 15 years, 20 years, 30 years, and 50 years.
Since the end of 2023, meetings and documents in some parts of China have mentioned planning projects to obtain financial support for ultra-long-term special government bonds, reflecting the expectations of all parties for the timely implementation of this policy tool.
Zhang Jun, chief economist of China Galaxy, said that from the new bond issuance plan announced by the provinces in the first quarter, the scale of special bonds has decreased compared with last year, and it is difficult for some local declared projects to meet the expected income requirements of special bonds, and ultra-long-term treasury bonds are more flexible in project approval and issuance, and pay more attention to long-term comprehensive social returns.
The second is special purpose. According to the information published in the work report, the purpose of issuing ultra-long-term special treasury bonds is to systematically solve the financial problems of the construction of some major projects in the process of building a strong country and national rejuvenation, and the relevant funds will be used exclusively for the implementation of major national strategies and security capacity building in key areas.
Jia Kang, founding director of the China Institute of New Supply Economics, expects that ultra-long-term special treasury bonds may better support the expansion of domestic demand and effective investment. Judging from the information released by some local ** meetings, ultra-long-term special treasury bonds may support regional coordinated development and new urbanization.
On March 5, the Second Session of the 14th National People's Congress opened at the Great Hall of the People in Beijing. The picture shows the minister attending the meeting. (*From China News Service).
The third is special significance. Chinese officials have asked to do more to boost confidence and expectations. Ultra-long-term special treasury bonds can not only bring real money, but also send a "reassuring pill" to economic development.
The issuance of ultra-long-term special treasury bonds will greatly help boost the confidence of all parties. Yao Yang, a distinguished professor of liberal arts at Peking University and director of the China Center for Economic Research, told China News Service that if the funds can be used to support local operations, it is also conducive to improving the business environment.
Pang Ming, chief economist of Jones Lang LaSalle Greater China, told China News Service that ultra-long-term treasury bonds can ensure sustained and stable fiscal spending. The ultra-long-term special treasury bonds to be issued by China are not included in the deficit, and can be issued at an opportune time based on market and economic conditions under the trend of moderate fiscal leverage, with a view to ironing out the imbalance of local economic growth, social development and debt pressure.
Zhang Jun also believes that compared with ordinary treasury bonds, ultra-long-term bonds can alleviate the pressure of debt repayment in the short and medium term, and solve the imbalance between economic development and local debt with time and space. (ENDS).
Written by Chabin.