A man in Ji'nan, East China's Shandong Province, poses for a photo after purchasing local government bonds issued by the provincial government at a bank on Thursday. Shandong issued its first batch of local government bonds worth 1 billion yuan ($149 million) through retail channels at commercial banks. The three-year bond has a 3.01 percent yield. Photo: VCG

China may issue its third batch of special treasury bonds with a scale expected to reach 2 trillion yuan ($282 billion), experts forecast after the nation proposed an issuance of special treasury bonds 13 years after the second issuance in 2007, as one of the means to combat the negative impact from the coronavirus pandemic.

"The total scale of the special treasury bonds may reach 2 trillion yuan, with 500-600 billion yuan worth of the bonds expected to be launched within the year," Ming Ming, chief macro and fixed-income analyst at CITIC Securities, told the Global Times.

The scale may surpass the second issuance in 2007, which was worth 1.55 trillion yuan, Ming noted.

The Political Bureau of the Communist Party of China's Central Committee held a meeting on Friday to make new arrangements on coordinating the COVID-19 response and economic and social development. The meeting noted a package of macro policies and measures will be introduced and China will "appropriately raise the fiscal deficit ratio" and issue special treasury bonds, among other measures.

"Issuing special treasury bonds is in line with the current situation and is more efficient for directly helping out small enterprises that have taken a huge hit from the epidemic," Chen Ji, a senior economist at Bank of Communications, told the Global Times.

With a better credit quality, special treasury bonds could help the government to lead capital from the market to firms that may not have a good credit rating but need the help most amid the pandemic, Chen said, adding that this could also stabilize employment.

Though Chinese enterprises have been gradually resuming production amid the easing epidemic situation in China, the escalating pandemic overseas may bring in a second round of problems for enterprises, Chen said, noting that combining a strong fiscal policy and monetary policy would be more efficient under such circumstances.

Global Times