What is a super long-term special Treasury bond? Can ordinary people buy it? Detailed Explanation →

In this year's government work report, it is proposed that in order to systematically solve the funding problems of some major projects in the process of building a strong country and national rejuvenation,Starting from this year, we plan to issue ultra-long-term special Treasury bonds for several years in a row, specifically for the implementation of major national strategies and security capacity building in key areas, with 1 trillion yuan issued first this year.

What is a super long-term special Treasury bond? Can ordinary people buy it? Let's find out.

What is a super long-term special Treasury bond?

According to experts, most of the national debt we usually hear refers to savings national debt. The ultra-long-term special Treasury bonds mentioned by the two meetings this year contain three key words - ultra-long-term, special, and national debt.

"Ultra-long term" refers to a period of time. In the bond market, it is generally considered that interest rate bonds with a maturity of more than 10 years are "ultra-long-term bonds". Compared with ordinary government bonds, ultra-long-term bonds can relieve the pressure of short and medium term debt repayment and exchange time for space.

According to Shi Yinghua, a researcher at the Chinese Academy of Fiscal Sciences, ultra-long-term bonds slow down the pressure on short - and medium-term repayment, and will lengthen the cycle of the entire fund. "The toolkit of fiscal policy is being further enriched, which is positive for making good use of policy space and better exerting the effect of fiscal policy."

"Special" refers to the use of funds.It is a national debt issued for a specific purpose and has a clear purpose, and the funds need to be earmarked for special purposes. According to the government work report, the goal of the ultra-long-term special government bonds mentioned this time is to promote the sustained recovery of the economy.

"National debt" is a kind of government bond issued by a country to raise financial funds It has the highest credit rating and is recognized as the safest investment tool.

What is the point of issuing super-long-term special government bonds?

This year, China's active fiscal policy should be "moderately strengthened", in a variety of policy tools, the addition of ultra-long-term special government bonds is particularly noteworthy. Luo Zhiheng, director of Yuekai Securities Research Institute and executive director of China Taxation Society, analyzed that the issuance of ultra-long-term special Treasury bonds has profound significance.

• Expanding aggregate demand and consolidating the current trend of economic recovery is the first short-term goal.

  
  

• The formation of major projects and projects has reduced the cost of economic and social operation, helped improve the efficiency of economic operation and optimized the supply structure.

  
  

• We will improve the debt structure of the central and local governments and reduce debt risks.

  
  

In addition, according to expert analysis, according to the government work report,The issuance of ultra-long-term special government bonds for several consecutive years starting this year will help boost market confidence and expectations, and send a signal that proactive fiscal policy will better support economic development.

Can ordinary people buy super long-term special Treasury bonds?

It is understood that the ultra-long-term special Treasury bonds are not the first issue. China first issued 270 billion yuan of special Treasury bonds to the four major state-owned banks in 1998, mainly to supplement the capital of wholly state-owned commercial banks.

In 2007, 1,550 billion yuan of special Treasury bonds were issued to fund the establishment of the State foreign Exchange Investment Corporation. The most recent was in 2020, when it issued 1 trillion yuan of special anti-epidemic government bonds.

So can ordinary people buy ultra-long special government bonds?It depends on the distribution method. If it's open to the public, you can buy it. If it's a private offering, you can't buy it. Follow-up work is still being arranged.

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Source: CCTV News

Editor: Li Na and Fang Ziyi

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