China's Economic Boost Through Special Bonds and Offshore Offerings

China is deploying 300 billion yuan in ultra-long-term special bonds to propel consumption and investments, potentially elevating nominal GDP growth by 0.4-1.3 percentage points in H2 2023. Despite these efforts, challenges like weak domestic demand and job insecurities persist, hindering consumer spending.

Additionally, Guangdong is set to issue 7.5 billion yuan in offshore yuan bonds in Hong Kong and Macau, following other regions like Shenzhen and Hainan, to bolster the Greater Bay Area and globalize the yuan. The Ministry of Finance is also issuing 55 billion yuan in treasury bonds in Hong Kong to solidify the city's role as an offshore yuan hub, supported by the southbound Bond Connect.

China's leadership reaffirms backing for the economy and property sector, emphasizing the need to alleviate municipal debts and revamp the real estate development model. With economic growth below the 5% target, efforts are underway to address the real estate crisis, including completing stalled projects and stabilizing prices.