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:
China’s credit in April shrank for the first time as government bond sales slowed, while loan expansion was worse than expected in a sign of weak demand. -BBG pic.twitter.com/E7brB5oKLO
— Tracy (𝒞𝒽𝒾 ) (@chigrl) May 12, 2024
Probably Nothing pic.twitter.com/1UhEaiQngh
— The Macro Guy (@SagarSinghSetia) May 13, 2024
BREAKING: Chinese 🇨🇳 authorities have kicked off plans to sell 1 trillion yuan ($138.39 billion) of long-dated bonds as Beijing ramps up spending to stimulate the economy, the Financial Times reported on Monday t.co/fBePOCOPJ5
— Financelot (@FinanceLancelot) May 13, 2024
efe.com/economia/2024-05-13/china-emitira-por-primera-vez-bonos-del-estado-a-20-30-y-50-anos/