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China will release CNY750 billion (approximately USD106.2 billion) in special treasury bonds to cover the repayment of the same amount of maturing notes, continuing the tradition of renewing bonds originally issued in 2007.
On December 12, the Ministry of Finance plans to sell CNY400 billion in 10-year bonds and CNY350 billion in 15-year bonds to settle the maturing debt on that day. Since the initial issuance of these bonds in 2007, the government has consistently issued new bonds to replace those that reach maturity.
An official from the Ministry of Finance confirmed that this year’s issuance will follow the same rolling renewal approach used in previous years, where new bonds are issued to match the amount of maturing notes. The funds raised will be used solely for repaying the bonds that mature in the same month, maintaining the same principal amount.
The official emphasized that this method of rolling issuance—where bonds are renewed for the same amount—does not contribute to an increase in the overall fiscal deficit. Notably, the maturity periods for these latest bonds have been extended to 10 and 15 years, compared to just three years for bonds issued earlier.
Back in 2007, the government issued approximately CNY1.55 trillion (around USD219.5 billion) of special treasury bonds. These funds primarily aimed to inject capital into the newly established China Investment Corporation, the country’s sovereign wealth fund. At that time, the government utilized the proceeds to purchase foreign exchange reserves from the central bank, supporting diversified management of foreign assets and helping to counteract liquidity excess and inflationary pressures in the economy.
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