(Yicai) April 20 -- China’s finance ministry will issue the first batch of this year’s ultra-long special treasury bonds on April 24, totaling CNY119 billion (USD17.5 billion) and accounting for about 9 percent of this year’s planned issuance.

The batch will include CNY34 billion (USD5 billion) of 20-year special treasury bonds and CNY85 billion of 30-year special treasury bonds, according to a recent announcement by the ministry. The timing matches last year’s first issuance, while the amount is slightly below last year’s CNY121 billion.

China said in 2024 that it would issue ultra-long special treasury bonds for several consecutive years to support the implementation of major national strategies and strengthen security capacity in key areas. According to the government work report, the country plans to issue CNY1.3 trillion (USD190.6 billion) of such bonds this year, in line with last year’s total.

Of the total, CNY800 billion will be used to support major national strategies and security capacity in key areas, CNY250 billion will go to the consumer goods trade-in program, and CNY200 billion will fund large-scale equipment upgrades. The remainder will be used as special funds to boost domestic demand.

About 18 percent of the proceeds from the ultra-long special treasury bonds will be used for central budget expenditures, with the rest transferred to local governments, according to the draft.

This year’s ultra-long special treasury bonds will have 20-year, 30-year, and 50-year maturities. China plans to issue 23 batches from this month through mid-October, with a schedule broadly similar to last year’s, according to the issuance timetable released by the finance ministry.

The first batch of 50-year special treasury bonds this year will be issued on May 6, earlier than the first such issuance on May 23 last year. The issuance size has not yet been announced.

Editors: Dou Shicong, Emmi Laine