Summary
- China is increasing government debt issuance to support local governments, low-income citizens, the property market, and state banks.
- Finance Minister Lan Foan announced a plan to issue 2.3 trillion yuan in special bonds over the next three months.
- The aid program is the largest since the 2007-2008 global financial crisis.
- Fiscal stimulus is crucial due to deflationary pressures, weak consumer confidence, and missed economic forecasts.