China to roll over 750b yuan of special treasury bonds

BEIJING - China will roll over 750 billion yuan ($106 billion) in special treasury bonds that will mature on Friday, the Ministry of Finance said Wednesday.

As the 750 billion yuan of treasury bonds issued in 2007 will mature on Dec 12, the ministry will issue an equivalent amount to designated banks on the interbank market. They include 400 billion yuan with a 10-year term and 350 billion yuan with a 15-year term, according to a statement on its website.

The funds raised will be used to repay the maturing principal. The ministry emphasized that this rollover is an equal replacement that will not increase the fiscal deficit.

In 2007, the ministry issued 1.55 trillion yuan in special treasury bonds as a source of capital for China Investment Corporation. These bonds primarily had terms of 10 and 15 years and have been maturing since 2017.

China has implemented a more proactive fiscal policy throughout the year to underpin economic and social development. The economy grew 5.2 percent year-on-year in the first three quarters, exceeding the annual target of around 5 percent.