China's Bold Economic Revival: Ultra-Long Bonds Unleashed

China plans to significantly increase funding from ultra-long treasury bonds in 2025 to boost business investments and consumer-oriented initiatives. Special treasury bonds will support equipment upgrades and consumer trade-ins, alongside digital product subsidies for households. This move aims to invigorate consumption and address economic challenges.

China is set to amplify its economic stimulus by ramping up funding through ultra-long treasury bonds in 2025, according to a state planner official, who announced the strategy on Friday. This initiative is part of Beijing's broader fiscal push to reignite the country's struggling economy.

These special treasury bonds will finance significant projects, including equipment upgrades and consumer goods trade-ins, as outlined by Yuan Da, deputy secretary-general of the National Development and Reform Commission. Additionally, households will be eligible for subsidies on select digital products.

With the world's second-largest economy facing various challenges, including a property crisis and high local government debt, Chinese leaders are keen on driving consumption and countering deflationary risks. Enhanced funding and strategic sector support are key components of this economic plan.

(With inputs from agencies.)