China News Service, Beijing, March 5 (Reporter Xia Bin) China's proactive fiscal policy has come up with new tools.
This year's government work report proposed that starting from this year, it plans to issue ultra-long-term special treasury bonds for several consecutive years, specifically for the implementation of major national strategies and the construction of security capabilities in key areas. This year, 1 trillion yuan (RMB, the same below) will be issued first.
Special Treasury bonds are nothing new.
For example, in 2020, China issued 1 trillion yuan of special anti-epidemic government bonds.
Experts believe that the ultra-long-term special treasury bonds to be issued this time have at least three special features.
On March 5, the second session of the 14th National People's Congress opened in the Great Hall of the People in Beijing.
Photo by China News Service reporter Han Haidan
One is special time.
In terms of the issuance period of the bond itself, "ultra-long-term" generally means that the issuance period is no less than 10 years.
China has previously issued government bonds with maturities of 10, 15, 20, 30 and 50 years.
Since the end of 2023, meetings and documents in some places in China have mentioned planning projects to obtain funding support from ultra-long-term special government bonds, reflecting the expectations of all parties for the timely implementation of this policy tool.
Zhang Jun, chief economist of China Galaxy Securities, said that judging from the new bond issuance plans currently announced by various provinces in the first quarter, the scale of special bonds has decreased compared with last year. The declared projects in some places are difficult to meet the expected return requirements of special bonds. Ultra-long-term treasury bonds It will be more flexible in project approval, issuance and use, and pay more attention to the long-term comprehensive social rate of return.
The second is special purposes.
According to the information released in the government work report, the purpose of issuance of ultra-long-term special treasury bonds is to systematically solve the funding problems of some major projects in the process of building a strong country and national rejuvenation. The relevant funds will be used exclusively for the implementation of major national strategies and the construction of security capabilities in key areas.
Jia Kang, founding director of the China New Supply-side Economics Research Institute, predicts that ultra-long-term special government bonds may better support the expansion of domestic demand and effective investment.
Judging from the information released at some local government meetings, ultra-long-term special treasury bonds may support coordinated regional development and new urbanization areas.
On March 5, the second session of the 14th National People's Congress opened in the Great Hall of the People in Beijing.
The picture shows the minister attending the meeting.
Photo by China News Service reporter Sheng Jiapeng
The third is special significance.
Chinese officials have requested that more things be done to boost confidence and expectations.
Ultra-long-term special government bonds can not only bring real money, but also provide a "reassurance" for economic development.
"The issuance of ultra-long-term special treasury bonds will be of great help to boost the confidence of all parties." Yao Yang, Distinguished Professor of Boya at Peking University and Director of the China Economic Research Center, told a reporter from China News Service that if the funds can be used to support the operation of local governments, the same Conducive to improving the business environment.
Pang Ming, chief economist of Jones Lang LaSalle Greater China, told China News Service that ultra-long-term government bonds can ensure sustained and stable fiscal spending.
The ultra-long-term special treasury bonds that China intends to issue will not be included in the deficit, and can be issued at an appropriate time based on market and economic conditions under the trend of moderate increase in central fiscal leverage, in order to smooth out the imbalance of local economic growth, social development and debt pressure.
Zhang Jun also believes that compared with ordinary treasury bonds, ultra-long-term bonds can alleviate short- and medium-term debt repayment pressures and trade time for space to solve the imbalance between economic development and local debt.
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