Chinese yuan Photo:VCG

China’s issuance of ultra-long special treasury bonds in the coming years to come is a major policy to boost consumption and support long-term high-quality development, Zheng Shanjie, head of the National Development and Reform Commission (NDRC), the country's top economic planner, said on Wednesday.

The proceeds from the bonds will be used to support technological innovation, urban-rural integrated development, coordinated regional development, food and energy security, and high-quality development, the areas of long investment cycles but currently facing insufficient existing funding channels, Zheng said.

The government will issue ultra-long special treasury bonds over each of the next several years for the purpose of implementing major national strategies and building up security capacity in key areas, starting with 1 trillion yuan of such bonds this year, according to the Government Work Report submitted Tuesday to the National People’s Congress for deliberation.

It is necessary to issue the ultra-long bonds in response to profound changes at home and abroad and it will help China to balance development and security, and firmly promote high-quality development and Chinese modernization, he said.

Zheng said that the NDRC is making concrete plans to oversee key projects and regulate funding to ensure that the policy is effectively implemented, adding efforts will be made to expand effective investment, including government investment and the expansion of private investment.

Aside from the ultra-long treasury bonds, this year's investments from the central government budget and issuance of new local government special bonds have substantially risen year-on-year. Also, the bulk of the additional 1-trillion-yuan government bonds issued late last year will be used this year.

Zheng also said that the NDRC will make maximum efforts to encourage and support private enterprises to participate in major national projects and to address the weak links across the economy.