Move signals Beijing’s push to strengthen major lenders
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China plans to issue 300 billion yuan ($43 billion) in special sovereign bonds to replenish the capital of major state-owned banks, Premier Li Qiang said Thursday at the opening of the country’s annual legislative session.
Special sovereign bonds could be used for the first time to bolster insurers’ capital as solvency pressure builds
Delegating approvals to provinces has accelerated fundraising, but a flaw in local government financing lingers
Ultra-long bonds, tax changes and tighter debt oversight anchor fiscal strategy as growth remains uneven
Beijing will also boost stimulus to support families and further back emerging industries, finance minister says.
The offering is expected to be popular with central banks and sovereign funds seeking to diversify away from US dollar assets.
Beijing aims to increase the use of its currency overseas as trading in US dollar assets becomes increasingly volatile.
