China has, in its own way, signaled it wants to support specific kinds of consumer purchases.
Authorities on Thursday announced the equivalent of 300 billion yuan ($41.5 billion) in special bonds would go towards trade-ins and equipment upgrades — a significant expansion of an existing program.
The 300 billion yuan ultra-long bond issuance is not a new government allocation, but rather a more detailed designation of a 1 trillion yuan ultra-long bond program announced earlier this year.
"300 billion yuan is the largest equipment upgrade subsidy from the central government historically," the analysts said.
Even the 300 billion yuan figure is split roughly between consumer-related trade-ins with business-side equipment upgrades.
Persons:
Ding, Morgan Stanley, Tao Wang, Darius Tang, Corporates, Fitch Bohua, Michael Bloom
Organizations:
China Asset Management Co, UBS Investment Bank
Locations:
China, Beijing, Asia