China is taking bold steps to revitalize its economy with a new spending plan. The country announced the issuance of special bonds to boost banks, stabilize the property market, and address local government debt. This move, part of a larger support package, aims to combat low consumption and a lingering property crisis in the world’s second-largest economy.
The special bonds will increase capital available to banks, encouraging more lending to stimulate consumer spending. Additionally, local governments will be allowed to borrow more to acquire unused land for development, lifting the property market out of a prolonged slump.
While specific figures were not disclosed, Finance Minister Lan Fo’an indicated that China still has room to issue debts and increase the deficit to fund these measures. The government also plans to issue special bonds to support large state-owned commercial banks, further fueling economic recovery efforts.
These actions come amid a broader push to reverse China’s slowdown and achieve a growth target of five per cent this year. With the issuance of special bonds and other fiscal stimuli, China aims to ignite a much-needed economic resurgence.
Ultimately, these measures signal China’s commitment to reigniting growth and restoring confidence in its economy, providing optimism for investors and consumers alike.