22 May 2024 | News & Feature

TFP W21 2024 - More debt is good news for some

  • The Chinese government decided to increase its ultra-long sovereign bond issuance in the past week, meeting the demand condition in China’s domestic financial market.
  • China’s higher bond issuance may signal the government’s commitment to providing cheap financing for the manufacturing sector, which will allow Chinese manufacturers to continue producing despite their low margins.
  • Continued manufacturing expansion in China may improve the outlook for Indonesia’s trade, which could help BI maintain its balanced policy mix.