China to issue record $411 billion in treasury bonds

China to issue record $411 billion in special treasury bonds in 2025 to boost economy amid expected U.S. tariffs.

Chinese authorities plan to issue a record 3 trillion yuan (£411 billion) in special treasury bonds for 2025, according to sources.

This marks a significant increase from this year’s 1 trillion yuan and is part of efforts to stimulate the economy as U.S. tariffs on Chinese imports are set to rise.

The funds from the bond issuance will focus on boosting consumption through subsidy programmes, business upgrades, and investments in advanced sectors.

The State Council Information Office and other official bodies have not commented on the announcement.

Following this news, yields on China’s 10-year and 30-year treasury bonds increased slightly.

Analysts view the planned issuance positively, as it reflects Beijing’s commitment to counter deflationary pressures in the economy.

The treasury bond issuance is categorized as an extraordinary measure not typically included in annual budget plans.

Around 1.3 trillion yuan will finance initiatives including subsidies for durable goods and large-scale business equipment upgrades.

Funds will also target investments in advanced manufacturing, such as electric vehicles and green energy.

Additionally, a portion will recapitalise large state-owned banks facing profitability challenges.

The issuance represents 2.4% of the GDP for 2023, indicating a significant leverage strategy by the central government.