China to Issue First Batch of Long-Term Bonds This Week

China's Ministry of Finance is poised to issue a series of long-dated bonds, including 30-year bonds, as part of a broader effort to raise more than $138 billion in debt. This initiative is aimed at stimulating the country's economy, which is grappling with high unemployment rates and a turbulent property market. The specific number of bonds to be issued has not been disclosed. The issuance of these bonds is part of a strategy to achieve the central government's growth target of approximately five percent for the current year, a goal that many economists consider ambitious, especially given the economic challenges faced by the youth and other sectors.

The bond sales, which will also include 20-year and 50-year bonds scheduled for May 24 and June 14 respectively, were previously alluded to by Premier Li Qiang. He mentioned that such financial measures would support major projects with strategic importance. This move reflects China's broader response to economic headwinds, similar to past actions such as the bond sales conducted in 2020 to mitigate the impact of the pandemic. The forthcoming sale of 30-year bonds is set to commence on Friday, indicating Beijing's continued commitment to employing financial tools to bolster economic stability and growth.