China to Roll Over $108 Billion of Special Sovereign Bonds

China plans to sell 750 billion yuan ($108 billion) of special sovereign bonds next week, the Ministry of Finance said Friday. The issuance is a rollover of debt from 2007 rather than a new liquidity injection, Caixin learned.

The government will sell the three-year notes Dec. 12 to help “support economic and social” development, the ministry said. It will issue the bonds to designated domestic banks in the interbank bond market, and the People’s Bank of China will carry out open-market operations with the banks, the ministry said, indicating that the central bank will buy the bonds from the banks to provide liquidity support.