Chinese parliament approves $137 billion sovereign bond

Posted on October 30, 2023   |  

China's top legislative body approved a $137 billion (¥1 trillion) sovereign bond issue. It passed a bill enabling local governments to advance a portion of their 2024 bond quotas, all to support the nation's economy.

The funds are raised through the newly issued sovereign bonds, which will aid the recovery and reconstruction of areas in China that disasters have impacted. 

Additionally, investments will be made to enhance urban drainage prevention infrastructure, fortifying China's resilience against natural calamities.

As a result of this decision, China's budget deficit for 2023 is expected to expand to approximately 3.8% of the country's gross domestic product (GDP), marking an increase from the previously established 3% plan.