Update | China Issues First Batch of Ultra-Long and Special Treasury Bonds to Support State Banks

On Thursday, China launched the initial issuance of ultra-long special treasury bonds and special treasury bonds aimed at strengthening the capital bases of major state-owned commercial banks.

As outlined in the 2025 government work report, the country plans to issue a total of 1.3 trillion yuan (approximately $180.31 billion USD) in ultra-long special treasury bonds this year—an increase of 300 billion yuan from 2024.

In addition, 500 billion yuan in special treasury bonds will be allocated specifically to help large state-owned banks enhance their capital reserves.

The first tranche of ultra-long special treasury bonds, worth 50 billion yuan, carries a 20-year maturity and a coupon rate of 1.98%. On the same day, a second tranche valued at 71 billion yuan was issued, featuring a 30-year maturity and a 1.88% coupon rate.

These long-dated bonds are designed to support the execution of major national strategies and bolster national security capabilities in critical sectors. They will also fund key initiatives such as large-scale equipment upgrades and consumer goods trade-in programs—measures experts believe will stimulate domestic investment and consumption.

China also issued 165 billion yuan in special treasury bonds on Thursday, dedicated to capital replenishment for large state-owned commercial banks. These bonds have a five-year term and offer a 1.45% coupon rate.

Industry analysts note that the move is expected to enhance financial stability, support bank operations, and promote high-quality economic development.