A Bloomberg (gated) report late Monday citing unnamed people familiar with the situation.
Says
- Chinese officials are considering setting a record quota for special local government bonds this year
- and expanding the budget deficit
This is part of further fiscal support for the recovering economy.
Authorities are considering raising the previous record of 3.75 trillion yuan for special local government bond quota
Also, a deficit target around 3% of GDP is being considered, higher than 2022's 2.8%.
- 2020's was 3.6%
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The total number of fresh bond sales that may be sold each year is constrained by the yearly quota.
Last year the actual issue of special bonds surpassed the initial quota. Local governments were permitted to use some of the unused quota from prior years.
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