China Aims to Boost Economy with $850 Billion Debt Plan

The three-year fiscal strategy involves issuing special treasury bonds to stabilize growth and support local governments.

China plans to issue 6 trillion yuan in special treasury bonds over three years to stimulate its economy.
The funds will help alleviate local government debt burdens and address financing risks amid declining revenues.
Analysts believe the fiscal package could support China in maintaining a 5% growth rate in 2024 and 2025.
The move follows recent monetary stimulus and is seen as crucial to countering deflationary pressures.
The fiscal measures are expected to be discussed at the upcoming meeting of the Standing Committee of the National People’s Congress.