China approves $839 billion debt swap plan to support local governments

cnbctv18.com

China's finance ministry has approved a plan to swap $839 billion in local government debt. This decision was made on November 8 during a meeting of the National People's Congress, aimed at supporting local governments and the economy. The plan allows local governments to refinance off-balance-sheet debt and raises their debt ceiling to 35.52 trillion yuan. This will enable the issuance of six trillion yuan in additional special bonds over three years. These measures come as China's economy grew 4.6% in the third quarter, the slowest since March 2023. Policymakers are responding to concerns about weak investment and consumption, while also preparing for potential challenges from tariffs under a new U.S. administration.


With a significance score of 4.9, this news ranks in the top 3% of today's 17973 analyzed articles.

Get summaries of news with significance over 5.5 (usually ~10 stories per week). Read by 9000 minimalists.