In China’s latest measure to stimulate the economy, Beijing announced the direct allocation of 300 billion yuan (about $41.4 billion) of ultra-long-term treasury bonds to local governments to support equipment upgrades and consumer goods trade-in projects.
Analysts pointed out that with foreign capital withdrawal, production overcapacity, sluggish domestic demand, and downgraded consumer spending, the money from the bonds invested by the authorities will have limited effect and may be embezzled by local officials.
