6 trillion RMB in new bonds for stimulus?; Joint Sword-2024B drills around Taiwan; Li in Vietnam; World Media Summit in Xinjiang
Summary of today’s Essential Eight:
1. Ministry of Finance presser and a Caixin report that government will issue 6 Trillion in treasury bonds - The highly anticipated Saturday press conference with Minister of Finance Lan Fo’an did not mention any specific numbers for additional support, but his comments about more measures coming “to help local governments reduce their debt, replenish state banks’ capital, bolster the real estate sector and aid low income groups” were enough to help mainland stock indices rise Monday. After market close Monday Caixin reported that “China may raise 6 trillion yuan from ultra-long special treasury bonds over three years as part of its efforts to buttress the slowing economy through fiscal stimulus…The funds will be partly used to help local governments resolve their off-the-books debts”. 6 Trillion RMB over three years may disappoint some, but when combined with the other measures announced recently it is probably enough to keep at least mainland inve…