Bonds Jun 16

More virus aid as Beijing outbreaks climb  

Another 100bn yuan of special bonds announced for containment measures amid more infections in capital 

More virus aid as Beijing outbreaks climb  
Testing times: Medical staff members in full protective gear carry signs to assist people who live near, or who have visited the Xinfadi Market, a Beijing wholesale food market where a new coronavirus cluster has emerged, for testing at the Guang’an sports centre on June 16, 2020. China reported another 27 domestically transmitted coronavirus cases in Beijing, where a fresh cluster linked to a wholesale food market has sparked WHO concern and prompted a huge trace-and-test programme. Noel Celis / AFP

(ATF) China will issue 100 billion yuan (about US$ 14.1 billion) of special government bonds for coronavirus control measures in a bid to balance epidemic control with economic and social development, the Ministry of Finance (MOF) said.

The move came as parts of Beijing were returned to containment measures after more than 100 new infections were detected.   

The MOF will issue two batches of fixed-rate special bonds, including 50 billion yuan of five-year bonds and 50 billion yuan of seven-year bonds, it said in a statement. Both will be listed and traded on June 23. 

China has vowed to inject as much capital as necessary to help contain the virus after tens of millions of people were locked into their homes for two months earlier this year, with the knock-on effect being a contraction of the economy.

China set its fiscal deficit at 3.6% of GDP and has issued a trillion yuan of government bonds for control measures this year.