China Plans $69 Billion Bond Issuance for State Banks

China plans to issue 500 billion yuan (approximately $69.7 billion) in special treasury bonds this year to support its major state-owned banks in enhancing their capital base, as outlined in a government work report presented to the national legislature. This initiative is part of a broader strategy to bolster the banks' operations and improve their ability to support the real economy amidst ongoing economic recovery efforts. Additionally, the country is set to replace 2 trillion yuan of local government debt, with a focus on increasing oversight of government debt management to address hidden debts. The bond issuance for the replacement program was confirmed by Lou Qinjian, a spokesperson for the National People's Congress. The upcoming issuance is expected to aid in stabilizing local government finances and facilitate infrastructure investments. Overall, these measures reflect China's commitment to economic stability and growth.