China’s Credit Contraction Signals Weak Demand Amidst Slowing Bond Sales; Plans $138 Billion Ultra-Long Debt Sale to Stimulate Economy

China’s Credit Contraction Signals Weak Demand Amidst Slowing Bond Sales; Plans 8 Billion Ultra-Long Debt Sale to Stimulate Economy
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China’s economy faces turbulent times as credit shrinks for the first time and trade balance numbers disappoint, signaling weak demand. In response, authorities unveil a $138 billion stimulus package, including the sale of ultra-long government bonds, in a bid to jumpstart economic growth.

  • China experiences credit shrinkage for the first time as government bond sales slow, indicating weak demand.
  • April’s trade balance reveals a deficit, with both exports and imports missing expectations, exacerbating economic concerns.
  • Chinese authorities announce a $138 billion stimulus package, with plans to sell ultra-long government bonds to stimulate the economy.
  • The bond sale, including bonds at 20, 30, and 50 years, signifies a significant shift in China’s fiscal strategy to combat economic challenges.

Sources:

efe.com/economia/2024-05-13/china-emitira-por-primera-vez-bonos-del-estado-a-20-30-y-50-anos/



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