• Login
NORVANREPORTS.COM |  Business News, Insurance, Taxation, Oil & Gas, Maritime News, Ghana, Africa, World
  • Home
  • News
    • General
    • Political
  • Economy
  • Business
    • Agribusiness
    • Aviation
    • Banking & Finance
    • Energy
    • Insurance
    • Manufacturing
    • Markets
    • Maritime
    • Real Estate
    • Tourism
    • Transport
  • Technology
    • Telecom
    • Cyber-security
    • Cryptocurrency
    • Tech-guide
    • Social Media
  • Features
    • Interviews
    • Opinions
  • Reports
    • Banking/Finance
    • Insurance
    • Budgets
    • GDP
    • Inflation
    • Central Bank
    • Sec/Gse
  • Lifestyle
    • Sports
    • Entertainment
    • Travel
    • Environment
    • Weather
  • NRTV
    • Audio
    • Video
No Result
View All Result
No Result
View All Result
NORVANREPORTS.COM |  Business News, Insurance, Taxation, Oil & Gas, Maritime News, Ghana, Africa, World
No Result
View All Result
Home Economy

China looks to reboot its economy with $220bn in bond sales

3 years ago
in Economy, Features, highlights, Home, home-news, latest News
2 min read
0 0
0
57
VIEWS
Share on FacebookShare on TwitterShare on Linkedin

China looks to reboot its economy with $220bn in bond sales

Just as we predicted over a year ago, China – which remains painfully limited in how it can kickstart its slowing economy – is preparing for a massive fiscal stimulus in the form of a tidal wave of local government bond sales. 

With growth in the world’s second-largest economy faltering especially after China’s President Xi Jinping made clear weeks ago that “Covid zero” isn’t going anywhere,  there is also “chance zero” that Beijing’s 2022 growth target of 5.5% will be achieved because of the lingering threat of new lockdowns. 

China’s slowdown recently forced the People’s Bank of China to cut key interest rates for long-term loans to cushion the property slump and lockdowns. Meanwhile, as doubts rise that China will rebound like prior economic downturns, policymakers are set for round two of stimulation: an infrastructure splurge. 

Bloomberg reports that China’s Ministry of Finance is considering allowing local governments to sell a whopping 1.5 trillion yuan ($220 billion) of “special” local bonds in the year’s second half. The people said the bonds would bolster the struggling economy. 

“The bond sales would be brought forward from next year’s quota,” according to people who asked not to be named because this has yet to be officially announced.

While the issuance of local bonds  – one of the very few places in China’s economy where there is excess debt capacity – is nothing new, this would be the first time “the issuance has been fast-tracked in this way, underscoring growing concerns in Beijing over the dire state of the world’s second-largest economy … previously local governments didn’t start selling the debt until Jan. 1, when the new budget year begins.” 

RelatedPosts

Dollar Slides as Trump Fires Fed Governor Lisa Cook

IISD and IMANI to Host Roundtable Shaping Ghana’s New Independent Fiscal Authority

Premier League: Ngumoha’s Late Goal Seals Liverpool’s Thrilling Win Over Newcastle

China is desperate to offset downward pressure on the economy by restoring its old playbook to increase infrastructure spending to cushion the economy in times of economic distress. If the country’s legislative body approves the proposal, it would add to the 1.1 trillion yuan ($164 billion) in new support for infrastructure unveiled last month. 

Economists surveyed by Bloomberg forecast the economy will grow around 4.1% this year, missing Beijing’s growth target of 5.5%. It appears pulling growth forward is a move by the government to offset the economic slump. 

While it is a normal practice for local governments to make proposals for the next year, that process normally kicks off in the last quarter of each year, one of the people said. Some provinces were told to start new projects when feasible even if the construction was originally scheduled to start next year, one of the people said Bloomerg 

Chinese stocks closed green on Thursday. The benchmark CSI 300 Index closed up about half a percent and has surged nearly 19% since finding a low in late April. 

After plunging in recent days, commodities caught a solid bid on expectations China will once again emerges as a major buying force as it prepares to build a whole new batch of ghost cities.

Source: Zerohedge
Via: norvanreports
Tags: $220bn in bond salesChinaChina looks to reboot its economy with $220bn in bond salesCovid-19yuan
No Result
View All Result

Highlights

US Open: Venus Williams and Keys Bow Out as Alcaraz Launches Campaign

GSE Opens Week Higher as CPC Posts First Gain of 2025

Asante Gold Announces Completion of $500m Financing Package to Boost Bibiani and Chirano Growth Plans

Gov’t Pledges to Intensify Reforms in Gold Sector Ahead of Crucial Anti-Money Laundering Assessment

Otto Addo Expected to Announce Squad for Crucial 2026 World Cup Qualifiers

How Artificial Intelligence Is Both Driving and Derailing Decarbonization

Trending

Business

Dollar Slides as Trump Fires Fed Governor Lisa Cook

August 26, 2025

Dollar Slides as Trump Fires Fed Governor Lisa Cook President Trump has fired Federal Reserve Governor Lisa...

IISD and IMANI to Host Roundtable Shaping Ghana’s New Independent Fiscal Authority

August 26, 2025

Premier League: Ngumoha’s Late Goal Seals Liverpool’s Thrilling Win Over Newcastle

August 26, 2025

US Open: Venus Williams and Keys Bow Out as Alcaraz Launches Campaign

August 26, 2025

GSE Opens Week Higher as CPC Posts First Gain of 2025

August 26, 2025

Who we are?

NORVANREPORTS.COM |  Business News, Insurance, Taxation, Oil & Gas, Maritime News, Ghana, Africa, World

NorvanReports is a unique data, business, and financial portal aimed at providing accurate, impartial reporting of business news on Ghana, Africa, and around the world from a truly independent reporting and analysis point of view.

© 2020 Norvanreports – credible news platform.
L: Hse #4 3rd Okle Link, Baatsonaa – Accra-Ghana T:+233-(0)26 451 1013 E: news@norvanreports.com info@norvanreports.com
All rights reserved we display professionalism at all stages of publications

No Result
View All Result
  • Home
  • Business
    • Agribusiness
    • Aviation
    • Energy
    • Insurance
    • Manufacturing
    • Real Estate
    • Maritime
    • Tourism
    • Transport
    • Banking & Finance
    • Trade
    • Markets
  • Economy
  • Reports
  • Technology
    • Cryptocurrency
    • Cyber-security
    • Social Media
    • Tech-guide
    • Telecom
  • Features
    • Interviews
    • Opinions
  • Lifestyle
    • Entertainment
    • Sports
    • Travel
    • Environment
    • Weather
  • NRTV
    • Audio
    • Video

Welcome Back!

Login to your account below

Forgotten Password?

Create New Account!

Fill the forms bellow to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In
NORVANREPORTS.COM | Business News, Insurance, Taxation, Oil & Gas, Maritime News, Ghana, Africa, World
This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.
We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it.