China eyes $850b in new debt to revive economy
China announces its foreign exchange reserves at the end of June 2024.PHOTO: FILE
China may raise an additional 6 trillion yuan ($850 billion) from special treasury bonds over three years to stimulate a sagging economy, local media reported, a figure that failed to revive sentiment in the country's stock market.
The Caixin Global report, which cited sources with knowledge of the matter, comes after Finance Minister Lan Foan on Saturday said Beijing will "significantly increase" debt, although the absence of details on the size and timing of the fiscal measures disappointed some investors.
The size of the expected fiscal package has been the subject of intense speculation in financial markets. Chinese shares hit two-year-highs earlier this month on news of the stimulus, before retreating in the absence of official details.
On Tuesday, stocks dipped about 0.3%, suggesting little excitement among investors about the reported amount, although analysts say it would at least stabilise growth in the near-term.