The central government will begin issuing some 30-year bonds on Friday as part of a planned sale of more than $138 billion of debt, according to a notice posted to the ministry's website.
Other bonds with tenors of 20 years and 50 years will go on sale on May 24 and June 14 respectively.
The Ministry of Finance did not specify the number of bonds that will be issued.
A volatile property market and high unemployment -- particularly among youth -- are key issues dragging down China's economy.
Leaders have set a target of around five percent for this year's growth, a figure seen as ambitious by many economists.
The bond sales are expected to lift that growth figure by one percentage point, Xing Zhaopeng of Australia and New Zealand Banking Group told Bloomberg.
The move had been hinted at in recent months by Beijing, with Premier Li Qiang saying in March that such measures would be used to support major projects of strategic significance.
"The main result of such issuance will be to replenish capital for domestic banks because most of those bonds will be held by banks," Dan Wang, chief economist at Hang Seng Bank China, told AFP.
"Given the contraction in the issuance of new bank credit, we are likely to see more long-term bond issuance in the future," Dan said.
"It won't help resolve the liquidity problem in the market, but only drive down the long-term financing cost for government projects," she added.
China has only sold such government bonds on a handful of occasions in the face of major economic headwinds, such as in early 2020 to help fund efforts to counter the pandemic.
- Lingering risks -
Consumer prices in the country have been in positive territory for three straight months, official data showed Saturday, but domestic spending remains relatively weak.
Real estate development once served as a key driver of growth in the country, but mounting debt at several of the sector's biggest firms in recent years has caused activity to stall.
The crisis is being exacerbated by falling home prices and increasing consumer wariness of investing in property.
Authorities have responded by lifting previous restrictions on buying homes in certain areas, including in the major cities of Hangzhou and Xi'an on Thursday, in a bid to spur purchasing.
At China's annual rubber-stamp parliament in March, leaders were upfront about the headwinds facing the economy, pledging to unveil various measures this year to boost growth.
Premier Li said at the time that achieving growth targets this year would "not be easy", given the "lingering risks and hidden dangers" still present in the economy.
And housing minister Ni Hong said on the sidelines of the gathering that fixing the property crisis would also be challenging, adding that real estate companies that "need to go bankrupt should go bankrupt, and those that need restructuring should be restructured".
Youth unemployment soared to an unprecedented 21.3 percent in mid-2023, before officials paused publishing monthly figures.
Investors have called for much greater action by the central government in order to shore up the flagging economy.
Asian markets mixed as traders pause ahead of US inflation data
Hong Kong (AFP) May 13, 2024 -
Equities fluctuated Monday as traders took a breather after the past weeks' healthy run as they absorbed weak Chinese data and reports that the United States planned to ramp up tariffs on clean energy products from the Asian country.
A sharp drop in US consumer confidence and a pick-up in inflation expectations also weighed on sentiment as eyes turn to the release later this week of the latest consumer price index (CPI).
The readings follow a recent rally across world markets fuelled by optimism that the Federal Reserve and other major central banks will soon cut interest rates.
The week was set to begin on a tepid note after figures showed a drop in a broad measure of credit in China that sparked worries of a further slackening in the world's number two economy.
That came as the Wall Street Journal reported that the White House is looking at almost quadrupling tariffs on Chinese electric vehicles as part of a plan that will also target batteries and solar cells.
A decision, expected on Tuesday according to reports, would come as President Joe Biden gears up for a rematch with Donald Trump in November's presidential election.
Last month, he urged for a tripling on tariffs for steel and aluminium as he courted blue-collar voters.
Still, analysts said the decision on EVs would not likely have much impact on China's growth as the sector was not reliant on US buyers, while some said retaliatory actions were unlikely.
The news came after weekend figures showing China's CPI rose more than expected in April, marking the third straight month of gains and providing some fresh hope for the economy.
In New York, the Dow and S&P 500 rose, even as a report showed consumer sentiment tumbled in April to its lowest level since November, while a survey of inflation expectations over the next year picked up.
Investors are now keeping a close eye on the US CPI, which is due Wednesday and will be pored over for an idea about the Fed's plans. The reading comes after three straight months of forecast-beating readings that have seen a whittling away of rate cut expectations.
Meanwhile, Dallas Fed chief Lorie Logan warned she thought it too early to think about any reductions, while governor Michelle Bowman did not see so far foresee any this year.
"As long as the labour market remains tight, consumer resilience could continue to dampen hopes of inflation cooling off," Subadra Rajappa, at Societe Generale in New York, said.
"A resumption of the disinflationary trend is imperative for the Fed to consider cutting this year."
Discussion on the US rate outlook comes as expectations rise that the European Central Bank and Bank of England are planning to cut in the summer.
London, Paris, Frankfurt and Amsterdam all hit new heights, with shares also benefitting from strong first-quarter earnings.
However, Asian markets were mixed in early exchanges, with Shanghai, Sydney, Seoul, Wellington and Jakarta all down, while Hong Kong, Singapore, Taipei and Manila rose, with Tokyo flat.
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