BREAKING: 🇨🇳
China announced a $1.4 TRILLION debt bailout and is working on more measures to boost the economy. pic.twitter.com/VP3iNzn2rl
— Radar🚨 (@RadarHits) November 8, 2024
BEIJING — China on Friday announced the central government would allocate an additional 6 trillion yuan ($840 billion) to local governments for tackling hidden debt issues.
The program takes effect this year and will run through the end of 2026, Chinese Minister of Finance Lan Fo’an told reporters. That breaks down to around 2 trillion yuan a year.
Lan added that starting this year, central authorities would issue 800 billion yuan a year in local government special bonds over five years, for a total of 4 trillion yuan.
The policies will reduce hidden debt from 14.3 trillion yuan to 2.3 trillion yuan by 2028, Lan said.
It was widely expected that Beijing would unveil more stimulus after its parliament ended a five-day meeting.
