Premier Li Qiang's revelation at the National People's Congress annual session in March 2023 marked the start of the distribution of these bonds, which were first issued in 2020. This move by the government aims to utilize the instrument for government funding.

Why Are These Bonds 'Special'?

The ultra-long-term special government bonds sold this year come with various investment terms, such as maturing after 20 years, 30 years, or 50 years, and offering yield rates ranging from 2.19% to 2.57%. As the name suggests, these bonds are designated for specific or "special" purposes. Before this year, China had only issued such bonds on three previous occasions.The first issuance was in 1998 to support state bank reconstruction during the Asian financial crisis. In 2007, 1.55 trillion yuan was raised to help establish the China Investment Corporation. The most recent issuance was in 2020 for pandemic prevention and recovery purposes.These bonds play a crucial role in the country's economic development. They provide a long-term source of funding for important projects and initiatives. The extended maturity periods allow for more stable and consistent investment, which is beneficial for both the government and investors. The yield rates offered are also attractive, providing a reasonable return on investment.Moreover, the issuance of these special bonds shows the government's commitment to addressing various economic challenges. It helps in stimulating economic growth and supporting key sectors. By using these funds for specific purposes, the government can have a targeted impact on the economy.In conclusion, the distribution of these special government bonds is a significant event with far-reaching implications for the country's economic landscape. It showcases the government's financial strategies and its ability to utilize different instruments to achieve economic goals.