The Chinese government took a rare and unexpected decision in October to issue 1 trillion yuan ($141 billion) of additional sovereign bonds in the fourth quarter to finance infrastructure spending, widening the budget deficit as a percentage of GDP for 2023 to a record high of 3.8%.
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Five things to know about China's unusual sovereign bond issue
Beijing's 1tn yuan splurge is expected to ease financial pressure on localities
The central government's willingness to issue 1 trillion yuan worth of rarely used special treasury bonds has ignited a debate about whether it is now willing to take on some of the spending duties weighing down local governments. © Reuters
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