China has taken a significant step in optimizing its debt structure by issuing its first batch of special treasury bonds with ultra-long terms exceeding 30 years. This marks a departure from previous issuances in 1998, 2007, and 2020, which primarily focused on shorter maturities.
The newly introduced ultra-long-term bonds are notable for their extended maturities, with some reaching up to 50 years. Historically, China has seldom issued treasury bonds with terms longer than 30 years, and the total outstanding balance of bonds with remaining terms exceeding 25 years remains below 2 trillion yuan ($277 billion).
In contrast, the special treasury bonds issued in 2020 for COVID-19 pandemic control and those issued in the fourth quarter of 2023 generally had maturities of 10 years or less. The introduction of these ultra-long-term bonds is expected to contribute to sustained economic and social stability by providing long-term funding for various projects and initiatives.
Reference(s):
cgtn.com
