SHANGHAI, Dec 1 (Reuters) – China’s finance ministry recently surveyed financial institutions about a sovereign bond issuance plan for next year, two people with direct knowledge of the matter said on Friday.
China’s bond issuance plans have attracted growing market attention after the government lifted its fiscal deficit for 2023 in October to free up more funds to kick-start the sputtering economy.
In a surprise move, China in late October approved 1 trillion yuan ($140.11 billion) of sovereign bond issuance for this year — its first such fiscal deficit expansion within the year in 23 years — and passed a bill to allow local governments to frontload part of their 2024 bond quotas.
The recent survey was conducted in a closed-door meeting hosted by the Ministry of Finance and was meant to ensure smooth and stable government bond supply into the new year, the sources said.
“There is no…
