China Government Bond Sales to Plunge After $1.6 Trillion Blitz

Chinese government bond issuance is set to plunge by year-end, offering relief to a market also pressured by a rotation into equities.

The central and local governments have only about 16% — or 2.2 trillion yuan ($309 billion) — of the year’s allowance remaining after raising a net 11.4 trillion ($1.6 trillion) in the first three quarters, according to Bloomberg-compiled data as of mid-September. That points to the lightest fourth-quarter net supply, excluding maturities, since 2022.