The Ministry of Finance clarified that this refinancing is an equivalent rolling issuance of the original special government bonds, which still corresponds to the original assets and liabilities and will not increase the fiscal deficit. Both batches of bonds will accrue interest from December 12, with interest paid semi-annually, and the principal and final interest will be repaid in 2035 and 2040 respectively. The coupon rate will be determined with reference to the average yield of treasury bonds of the same maturity in recent periods.
Earlier, on December 10, the Ministry of Finance successfully issued the 6th batch of RMB 7 billion yuan-denominated government bonds in Hong Kong through bidding, with a subscription multiple as high as 5.22 times, fully demonstrating the market’s recognition of RMB-denominated government bonds. Industry analysts believe that this refinancing of special government bonds can not only smoothly connect the maturing debts but also provide stable funding support for national key projects. At the same time, the targeted issuance model can reduce disturbances to market liquidity, which is of positive significance for maintaining financial market stability.
On December 10, Kristalina Georgieva, Managing Director of the International Monetary Fund (IMF), stated that the IMF has raised its forecast for China’s economic growth in 2025 by 0.2 percentage points to 5%. This adjustment, which revises the relevant forecast in its October “World Economic Outlook Report”, is attributed to the strong resilience shown by China’s economy amid multiple external shocks.
On the same day, the Asian Development Bank (ADB) also released a report, raising its growth forecast for developing economies in the Asia-Pacific region in 2025 to 5.1%, an increase of 0.3 percentage points from the September forecast. The steady exports of high-income technology-exporting economies in the region have become an important supporting factor. As the core engine of the Asia-Pacific economy, China’s role in driving regional growth through factors such as domestic demand recovery and industrial upgrading was highlighted in the report.
