China moves to boost economy with $137 billion sovereign bond issuance

China plans to issue sovereign bonds worth 1 trillion yuan ($137 billion) in an effort to support its economy following a slow post-Covid recovery. Zhang Zhiwei of Pinpoint Asset Management said the move was “highly unusual” and “came to the market as a surprise”. “I take this policy as another step in the right direction — China should make its fiscal policy more supportive, given the deflationary pressure in the economy,” he wrote in a note. “Part of the funds raised will be utilized next year, hence this helps to boost growth outlook beyond Q4.”