China to issue 100b yuan of special government bonds for COVID-19 control

China will issue 100 billion yuan (about $14.1 billion) of special government bonds for COVID-19 control measures in a bid to balance epidemic control with economic and social development, the Ministry of Finance (MOF) said on June 15.

The MOF will issue two batches of fixed-rate special bonds, including 50 billion yuan of five-year bonds and 50 billion yuan of seven-year bonds, the MOF said in a statement.

Both will be listed and traded on June 23, 2020.

China will pursue a more proactive and impactful fiscal policy, setting its fiscal deficit above 3.6 percent of GDP and issuing 1 trillion yuan of government bonds for COVID-19 control this year to release more funds for companies and individuals.