China $108 Billion Bond Sale Expected to Refinance Old Debt
- Issuance of notes on same data as maturing of 2007 bonds
- Issuance does not represent stimulus, economists say
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China will sell 750 billion yuan ($108 billion) worth of special sovereign bonds next week, in a move economists said was likely to be a rollover of existing debt rather than representing new stimulus.
The notes will be sold on Dec. 12, and issued to designated domestic banks in the interbank bond market, according to the statement posted on the Ministry of Finance website late Friday. The People’s Bank of China will carry out open market operations with relevant banks, it added. That implies the central bank will likely provide liquidity support for the banks to buy the bonds.