Chinese authorities have kicked off plans to sell RMB 1 trillion ($140 billion) of long-dated bonds, as Beijing ramps up spending to stimulate the economy, reports the Financial Times. The People’s Bank of China has asked brokers for advice on pricing the sale of the first batch of the sovereign bonds, according to two people who received requests.
China’s government announced plans for the bond sale during the annual session of the country’s legislature in March, saying it would support investment in key areas and reinforce economic momentum in the second quarter amid the country’s lengthy property crisis.
“The bond sale is a critical part of the concerted efforts to support significant, urgent and challenging projects that are essential for the modernisation of the economy,” Liu Sushe, deputy head of the National Development and Reform Commission, said in a public briefing in mid-April.