When China’s Finance Minister Lan Fo’an unveiled his nation’s latest effort to support flagging economic growth, attention fell on a comment about bond issuance and its impact on spending. Unlike the US and other developed nations — where fiscal stim
(Bloomberg) — When China’s Finance Minister Lan Fo’an unveiled his nation’s latest effort to support flagging economic growth, attention fell on a comment about bond issuance and its impact on spending. Unlike the US and other developed nations — where fiscal stimulus packages are typically framed as a pledge to spend a certain amount of money — in China investors take their cue from the magnitude of borrowing that will be unleashed. But there’s a variety of different debt types, reflecting the complexity of a budget system with multiple layers of authorities and different policy goals. Here’s a guide to what each type of security means. Read More
