China is set to introduce ultra-long special treasury bonds beginning in 2024, as outlined in the latest government work report. These bonds are designed to meet the country's long-term financing needs and attract a diverse range of investors.
The primary purpose of these ultra-long bonds is to enhance economic stability by providing a reliable source of funding for large-scale infrastructure projects and other long-term initiatives. By extending the maturity periods beyond traditional treasury bonds, China aims to offer investors more flexible investment options with potentially higher yields.
One of the distinguishing features of these ultra-long treasury bonds is their extended duration, which can span several decades. This makes them particularly appealing to institutional investors looking for stable, long-term investment opportunities. Additionally, these bonds are expected to play a crucial role in diversifying China's debt portfolio and reducing reliance on short-term financing.
The introduction of ultra-long treasury bonds is also a strategic move to position China as a key player in the global bond market. By offering innovative financial instruments, China seeks to attract foreign investors and strengthen its financial influence on the global stage.
Reference(s):
cgtn.com
