China Unleashes New Bonds, Monetary Expansion in Response to Growing Developer Debt Crisis

In a bid to sustain the economy, Beijing resorts to the issuance of new bonds and the printing of money.

Unfinished apartment buildings at the Phoenix City residential project, developed by Country Garden Holdings Co., in Shanghai, China, on Jan. 17, 2022. Qilai Shen/Bloomberg via Getty Images

News Analysis

Seventeen Chinese provinces have rolled out special refinancing bonds this month, with a total bond issuance of 726.25 billion yuan (about $103.8 billion). This issuance is intended to repay local government debts, essentially involving taking on new debt to settle old ones.