Beijing: China's Ministry of Finance reported that local governments issued a total of 1.98 trillion yuan (about 277 billion US dollars) in new bonds between January and May 2025.
According to Bahrain News Agency, this included 351 billion yuan in general purpose bonds and over 1.63 trillion yuan in special purpose bonds. The bonds had an average maturity of 16.4 years and a weighted average interest rate of 1.95 percent.
Local government debt rose to 51.25 trillion yuan by the end of May. The bond issuance is part of China's proactive fiscal policy aimed at supporting economic and social development.
According to the government's work report, China plans to issue 4.4 trillion yuan in special purpose local government bonds in 2025, an increase of 500 billion yuan from 2024. The measure is intended to boost domestic investment and stimulate economic growth amid global challenges.