BEIJING (Reuters) – China will allocate 300 billion yuan ($41.40 billion) in ultra-long-term treasury bonds to support a programme of equipment upgrades and consumer goods trade-ins, the government said on Thursday.
Of the total, 148 billion yuan will be used for supporting equipment upgrades, according to a notice issued by the country’s state planner and finance ministry.
Authorities will bar local governments from using the bond funds to repay local debt and balance local budgets, it said.
The steps followed a pledge last week by China’s cabinet to increased support for the programme which was aimed at spurring investment and consumption amid a shaky economic recovery.
China plans to sell 1 trillion yuan of special treasury bonds this year, as part of a broader effort by authorities to revive key sectors of a struggling economy.
China will lower project application requirements for using ultra-long special sovereign bonds to support equipment upgrades of small and medium-sized firms, according to the notice.
China will raise subsidies for car trade-ins to up to 20,000 yuan apiece, it added.
($1 = 7.2465 Chinese yuan)
(Reporting by Beijing newsroom; Editing by Himani Sarkar and Christian Schmollinger)