China's Bold Move: Special Treasury Bonds to Boost State Banks

China will issue special treasury bonds to enhance state banks' capital and increase government debt. This move, confirmed by Finance Minister Lan Foan, follows intense global market speculation after the Politburo's September meeting highlighted urgent economic challenges.

China is set to issue special treasury bonds aimed at reinforcing the capital reserves of state banks, thereby significantly escalating government debt. Finance Minister Lan Foan made this announcement during a press conference held on Saturday.

The global financial markets have been rife with speculation regarding China's fiscal stimulus initiatives following a critical September assembly of the Communist Party's Politburo. This meeting marked an elevated level of concern over the mounting economic challenges facing the nation.

With the issuance of these special bonds, China indicates a strategic shift towards bolstering its financial infrastructure amid these economic headwinds, underscoring the government's commitment to stabilizing and sustaining economic growth.

(With inputs from agencies.)