(Yicai) Oct. 15 -- China has issued the final tranche of this year's CNY1.3 trillion (USD182.1 billion) quota for ultra-long-term special treasury bonds.

The Ministry of Finance sold CNY40 billion (USD5.6 billion) of 20-year special treasury bonds with a coupon rate of 1.92 percent and an issue price of CNY95.41 (USD13.36) yesterday, it announced on the same day.

China reintroduced special treasury bonds last year to help mitigate mounting downward pressure on the economy, issuing CNY1 trillion of the bonds. The first and last tranches this year were sold over a month earlier compared with a year ago.

The probability of issuing ultra-long-term special treasury bonds beyond the quota this year is very low, but China will likely sell more than CNY1 trillion of such notes next year, Wen Laicheng, a professor at Central University of Finance and Economics, told Yicai.

The issuance of ultra-long-term special treasury bonds this year has been generally smooth, attracting enthusiastic subscribers, Wen noted, adding that funds were successfully raised at a relatively low cost and played a significant role in promoting stable economic growth.

Against the backdrop of insufficient domestic demand, the complex external situations, and increasing downward pressure on the economy, the issuance of ultra-long-term special treasury bonds and the utilization of the funds raised can help stabilize economic growth and maintain social stability, Wen pointed out.

Ultra-long-term special treasury bonds come in 20-year, 30-year, and 50-year terms and are an important policy tool for the Chinese government to stimulate investment and consumption to drive industrial demand and stabilize economic growth. The funds are mainly used for major infrastructure projects, large-scale equipment updates by firms, and the trade-in of old consumer goods.

Editors: Tang Shihua, Martin Kadiev