Economics

China Considering Increasing Local Debt Sales to Boost Stimulus

  • Policy makers may raise special bond quota from $305 billion
  • Morgan Stanley sees increase worth 0.75-1 ppt of GDP

A pedestrian walks through an alleyway as cranes stand in the background in an area slated for redevelopment in Shanghai.

Photographer: Qilai Shen/Bloomberg
Lock
This article is for subscribers only.

Terms of Trade is a daily newsletter that untangles a world embroiled in trade wars. Sign up here.

China is considering allowing provincial governments to issue more bonds for infrastructure investment, people familiar with the matter said, a move that would boost government stimulus as the economy continues to decelerate.