China's Economic Boost: $41.40 Billion in Ultra-Long Treasury Bonds for Upgrades and Trade-Ins

China will allocate 300 billion yuan ($41.40 billion) in ultra-long treasury bonds to support equipment upgrades and consumer goods trade-ins. Subsidies will be given for new energy passenger cars and home appliances. The move aims to spur economic recovery amidst slow retail sales growth, with all funds disbursed by August-end.

China has announced it will allocate 300 billion yuan ($41.40 billion) in ultra-long treasury bonds to fund equipment upgrades and consumer goods trade-ins, the government revealed on Thursday. This initiative is part of the latest efforts to revive the nation's economy.

The National Development and Reform Commission (NDRC) and the finance ministry stated that approximately half of the bond funds are earmarked for supporting consumer goods trade-ins. New energy passenger car buyers will receive subsidies ranging from 15,000 to 20,000 yuan, while purchasers of home appliances such as televisions, air conditioners, and computers will receive subsidies of 15%-20% of the item price, capped at 2,000 yuan per item.

The NDRC's deputy head, Zhao Chenxin, highlighted that all 300 billion yuan will be disbursed by the end of August, amid retail sales growth hitting a low of 2.0% in June, the slowest pace since December 2022. The government aims to stabilize the consumption of key market sectors to spur economic recovery.

(With inputs from agencies.)