China on Thursday issued the first batches of ultra-long special treasury bonds and special treasury bonds aimed at helping large state-owned commercial banks replenish capital.
According to the 2025 government work report, a total of 1.3 trillion yuan (approximately 180.31 billion USD) in ultra-long special treasury bonds will be issued this year—300 billion yuan more than in 2024.
Additionally, 500 billion yuan in special treasury bonds would be issued to support large state-owned commercial banks in boosting their capital reserves.
The first phase of ultra-long special treasury bonds, worth 50 billion yuan, was issued Thursday with a 20-year term and a coupon rate of 1.98 per cent. A second phase, valued at 71 billion yuan, was also issued the same day with a 30-year term and a 1.88 per cent coupon rate.
These ultra-long bonds are intended to support the implementation of major national strategies and improve national security capabilities in key areas.
They also aim to fund a new round of large-scale equipment upgrades and consumer goods trade-in programmes, with experts noting the move could stimulate domestic investment and consumption.
Additionally, China issued 165 billion yuan in special treasury bonds on Thursday, specifically for capital replenishment in large state-owned banks. These bonds have a five-year term and a coupon rate of 1.45 per cent.
Industry analysts say the issuance will help banks consolidate their operations and enhance both financial stability and high-quality development.
