China is to issue a record 3 trillion yuan worth (US$411 billion) of special treasury bonds in 2025 to help stimulate its flagging economy.
Money raised from the bonds will be used to subsidise consumption and investments in key technology and advanced manufacturing sectors, according to a report from Reuters.
Some of the money will also be used to prop up large state banks, said the report.
After seeing economic growth slow sharply over the past year, China is bracing itself for the impact of new tariffs from US President Donald Trump, with bond sales designed to boost domestic consumption to compensate.
China’s special sovereign bonds are issued for specific purposes and therefore are not counted toward the headline budget deficit.
Some one trillion yuan worth of this type of bond was sold this year, which itself marked a new record.
“It’s bigger than our expectations and shows the government’s willingness to shore up growth through a more sizable fiscal stimulus,” Michelle Lam, Greater China economist at Societe Generale, told Reuters.