CHINA-ECONOMY: CHINA'S MINISTRY OF FINANCE ANNOUNCES PLANS FOR USING RMB 1 TRILLION SPECIAL TREASURY BONDS
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China's Ministry of Finance (MoF) on June 23, clarified how it plans to use proceeds from its Special Treasury Bonds (STBs) which the government announced at the 'Two Sessions' in May, to support the economy. This marks the first STB issuance since 2007. The announcement said the STBs will be used for: Infrastructure; Rent subsidies; Loan discounts for key enterprises; Loan discounts for new businesses; Subsidies to help businesses stabilise employment; Basic living allowances for people in need; and other expenditures to combat the coronavirus. It has also mandated that all RMB 1 trillion of STB money will go to cities and counties rather than provincial governments.
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