China Accelerates Government Bond Issuance and Real Estate Policies to Boost Economy

China's economy, grappling with subdued demand, experienced a significant boost in May due to accelerated government bond issuance and robust real estate policies. The government issued 800 billion in ultra-long-term special bonds, with plans to release the remaining 9.2 trillion by November. This initiative is designed to stabilize and invigorate economic growth.

Government bonds, essential for financing public projects, saw a surge in May, reaching a total issuance of 1.9 trillion, including net financing of 1.3 trillion—a record high in recent years. This acceleration supports ongoing infrastructure investments, which are crucial for maintaining economic momentum.

Concurrently, real estate policies were strengthened, featuring measures such as reduced down payment requirements and lifted mortgage rate caps. These actions aim to stabilize the housing market and enhance consumer confidence, given the property sector's significant impact on economic health.

Economists highlight that these fiscal and real estate measures are crucial for economic stability, noting that previous slowdowns in bond issuance and property market downturns have been addressed through these proactive strategies. The objective is to ensure sustained economic recovery and growth, in line with broader national economic goals.