China to Sharply Increase Financing from Treasury Bonds to Boost Growth in 2025

Forex - Yuan Da, an official from China's National Development and Reform Commission (NDRC), stated that as Beijing increases fiscal stimulus to revive the stagnating economy, China will sharply increase funding from ultra-long treasury bonds to promote business investments and consumer-boosting initiatives by 2025.

In his remarks, Yuan Da indicated that special treasury bonds will be used to finance new initiatives. Among these new initiatives is a subsidy program for durable goods, allowing consumers to trade in their old cars or appliances for discounts on new purchases, along with a separate program to subsidize large-scale equipment upgrades for businesses.

Yuan Da mentioned that households will be eligible for subsidies this year to purchase three types of digital products, including mobile phones, tablets, smartwatches, and bracelets. In December, the NDRC emphasized that Beijing allocated all of the 1 trillion yuan revenue from ultra-long special treasury bonds for 2024, with about 70% of the revenue financing "two major" projects, and the remainder directed towards new initiatives.