Greg pointed to the overnight news here:
ICYMI, Bloomberg carried a report saying China is considering $220 billion in stimulus.
- China is considering letting local governments sell an additional $220 bn (which is around 1% of GDP) of special bonds in H2 of this year to fund infrastructure investment
- bond sales would be brought forward from next year’s quota, according to people familiar with the discussions
- previously. local governments didn’t start selling the debt until January 1, when the new budget year begins. The proposal to adjust that timeline would therefore need to be reviewed by the State Council and might also need approval from the country’s legislative body, the National People’s Congress.
Link to the Bloomberg article, gated
