Workers at a highway construction site at Wenling, East China's Zhejiang Province on November 15, 2021. The highway, which is expected to cost 12.85 billion yuan ($2.01 billion), is the largest investment project in the city. China embarked on a construction boom starting in October as fiscal stimulus quickened and the issuance of special bonds accelerated. Photo: cnsphoto

As of July 24, China has issued over 418 billion yuan ($58 billion) in ultra-long-term special treasury bonds, as part of its 1 trillion-yuan issuance planned for this year, in a bid to bolster the country's high-quality economic development, China's Ministry of Finance said on Wednesday.

On Friday, the Ministry of Finance will proceed with the first reissue of the fourth batch of these bonds, with a total issuance amounting to 44 billion yuan, according to an announcement on Wednesday.

These fiscal measures come as the economy shows signs of recovery, with GDP growth in the first half of 2023 reaching 5 percent. Investment in high-tech and manufacturing sectors has shown strong growth, signaling a key pivot toward high-quality development, analysts said.

China has flagged plans to issue 1 trillion-yuan ultra-long-term special bonds his year to fund major national strategies and support security capability, with more to follow in coming years, according to this year's Government Work Report.

During 2024, China has moderately intensified its proactive fiscal policy, with sweeping measures announced following this year's two sessions, the Ministry of Finance told a press briefing, highlighting the decisive actions' crucial role in securing the sustained recovery of China's economy.

The ministry noted that last year's 1 trillion yuan in extra bonds has been fully distributed to local governments and largely put into action across a range of different projects.

Throughout 2023, these bonds have funded 15,000 projects, including disaster relief, flood control, and urban drainage, and all projects have now started, China's National Development and Reform Commission noted.

The commission also revealed that by July 26, local governments in China had issued 1.9 trillion yuan in new bonds, expanding special bonds' use by targeting new infrastructure and emerging industries, and regions with well-prepared projects and effective utilization.

Looking ahead, the ministry vowed to enhance policy implementation to drive a sustained economic recovery and growth target. 

The outlined plans will focus on measures such as better leveraging government investment and intensifying efforts to drive large-scale equipment renewal and trade-in of major consumer items.

On July 25, multiple national departments issued new measures to allocate approximately 300 billion yuan in ultra-long-term special government bonds to ramp up efforts in large-scale equipment renewal and trade-in of old consumer goods, including automobile and household appliances.

Global Times