National debt;government loan），also calledState bondsIt refers to the creditor's rights and debt relationship formed by the state based on its credit, according to the general principle of debt, and raising funds from the society.National bonds are bonds issued by the statecentral governmentTo raiseFinancial fundsAnd the one issuedgovernment bondsIt is issued by the central government to investors and promises to pay interest andRepayment at maturityClaims on principaldebt obligation Since the issuing subject of national debt is the country, it has the highest credit and is recognized as the safest investment tool.[1]
On June 15, 2020, the Ministry of Finance issued a notice specifying that,Special national debt for epidemic prevention in 2020Launch Release[2]。[2]September,FTSE RussellThe company announced that Chinese government bonds will be includedFTSE World Bond Index（WGBI）[3]。In December 2021, Chinese government bonds were officially included in the FTSE World Government Bond Index (WGBI).[6]
On January 2, 2024 local time,US TreasuryRelease report:US TreasuriesThe total reached US $34 trillion for the first time, rising from US $33.911 trillion to US $34.001 trillion.[17]MayOn the 13th,Website of Ministry of FinanceAnnounce arrangements for the issuance of general treasury bonds and ultra long term special treasury bonds in 2024.[21]
On July 10, the Ministry of Finance will issue the third tranche of RMB government bonds in 2024 in the Hong Kong Special Administrative Region on July 10, with an issuance scale of 9 billion yuan. The specific issuance arrangement will be announced in the Central Clearing System of Debt Instruments (CMU) of the Hong Kong Monetary Authority.... Details
China first issued domestic public debt and borrowed a large number of foreign debts that humiliated the country at the end of the Qing Dynasty.
Led by the Communist Party of ChinaRed regimeIn the new democratic period, it also issued bonds for many times. For example, in 1932, Jiangxi Central Revolutionary Base issued bonds in two installments with a total amount of 1.8 million yuan“Revolutionary warShort term public debt”。
After the founding of New ChinaNational debt issuanceIt can be divided into three stages: the first stage was in 1950, when New China was just founded, in order to ensure the supply and recovery of the ongoing revolutionary warnational economy, issued a total value of about 30.2 billion yuan“People's Victory Converted into Government Bonds”。The second stage was from 1954 to 1958. In order to carry out socialist economic construction, it issued 3.546 billion yuan“National economic construction bonds”。The third stage is after 1979, in order to overcome financial difficulties and raise fundsKey construction fundsChina began issuing treasury bonds again in 1981.By 1995, eight types of domestic debt had been issued, includingtreasury bill、National key construction bonds、Treasury bond、Special bonds, directional bondsHedged bonds, convertible bonds, etc., with a cumulative balance of 330 billion yuan.
national debt
On June 15, 2020, the Ministry of Finance issued a notice specifying that in order to raise fundsFinancial fundsAnd comprehensively promote epidemic prevention and control and economysocial development, decide to issueSpecial national debt for epidemic prevention in 2020(Phase I) and special national debt for epidemic prevention in 2020 (Phase II).[2]
In September 2020,FTSE RussellThe company announced that Chinese government bonds will be includedFTSE World Bond Index（WGBI）。China's government bonds will be included in the FTSE World Government Bond Index from October 2021.After further confirmation in March 2021, international investors will be able to enter China, the world's second largest through the FTSE Russell flagship indexbond market。[3]
In December 2021, Chinese government bonds were officially included in the FTSE World Government Bond Index (WGBI).[6]
On June 15, 2022, the Ministry of Finance issued the first installment of RMB 7.5 billion treasury bonds in 2022 in Hong Kong.[7]
On September 20, 2023, according to the data released by the US Treasury Department, the total amount of US treasury bonds will exceed 33 trillion US dollars (about 240.8 trillion yuan) on September 18 local time.The New York Times said that the total national debt reached a new high, and the financial prospects of the US government were worrying.[12]
On October 18, 2023, the Hong Kong Monetary Authority announced that the Ministry of Finance would issue additional RMB government bonds through the central clearing system of the HKMA's debt instruments, with a total issuance scale of 16 billion yuan, divided into four years.[13]
On October 24, 2023, the sixth meeting of the Standing Committee of the 14th National People's Congress voted to pass the resolution of the Standing Committee of the National People's Congress on approving the State Council's issuance of additional treasury bonds and the central budget adjustment plan for 2023.The resolution specifies that the central government will issue an additional 1 trillion yuan of 2023 national debt in the fourth quarter of this year, and all the additional national debt will be allocated to local governments through transfer payments, so as to focus on supporting post disaster recovery and reconstruction and making up for the shortcomings in disaster prevention, mitigation and relief, and improve China's ability to withstand natural disasters as a whole.[14]
In December 2023, the first batch of national debt fund budget of 237.9 billion yuan has been issued, including 107.5 billion yuan of subsidies for post disaster recovery and reconstruction and for improving disaster prevention and mitigation capacity, 125.4 billion yuan of subsidies for high standard farmland construction in the northeast region and Beijing Tianjin Hebei disaster affected areas, and 5 billion yuan of subsidies for key natural disaster comprehensive prevention and control system construction projects (meteorological infrastructure project construction).[16]
From March 10 to March 19, 2024, the first and second phases of savings bonds (voucher type) will be issued in 2024. Both phases of government bonds are of fixed interest rate and fixed term varieties, with a maximum total issuance of 30 billion yuan.The two treasury bonds are sold on a commission basis by 40 members of the 2024-2026 savings bond underwriting syndicate.[18]Among them, the term of the first phase is three years, the maximum issuance is 15 billion yuan, and the annual coupon rate is 2.38%;The second phase has a term of five years, with a maximum issuance of 15 billion yuan and an annual coupon rate of 2.5%.[19]MayOn the 13th,Website of Ministry of FinanceAnnounce arrangements for the issuance of general treasury bonds and ultra long term special treasury bonds in 2024.China will issue 1 trillion yuan of ultra long term special treasury bonds. The term of ultra long term special treasury bonds includes 20 years, 30 years and 50 years. The interest payment method is semi annual.On May 17, ultra long term special treasury bonds were issued for 30 years;On May 24, 20 year super long term special treasury bonds were issued;On June 7, the Ministry of Finance issued the 2024 30-year super long-term special treasury bonds for the first time;On June 10, 2024, the third and fourth phases of savings bonds (electronic) were officially launched in the banking channel;On June 14, 50 year super long term special treasury bonds were issued。[20-22][24-25]According to the news on the website of the Ministry of Finance on July 3, according to the relevant work arrangement, the Ministry of Finance will issue the third phase of 2024 RMB government bonds in the Hong Kong Special Administrative Region on July 10, with the issuance scale of 9 billion yuan. The specific issuance arrangement will be announced in the Central Clearing System for Debt Instruments (CMU) of the Hong Kong Monetary Authority.[26]
Encyclopedia x Knowledgeable: Illustration of National Debt
main features
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National debt is a special form of debt, which has the following characteristics compared with the general debt relationship:
The creditors of national debt can be domestic and foreign citizens, legal persons or other organizations, or the government of a country or regionInternational financial organizationsThe debtor can only be the state.
During the war, the military expenditure was huge. In the absence of other financing methodsWar debtRaise funds.Issuing war bonds is a common way for governments of all countries in wartime, and it is also the first origin of national bonds.
Generally speaking, the balance of fiscal revenue and expenditure can be achieved by increasing taxes and issuing more sharescurrencyOr the method of issuing national debt.Compared with the above three methods, tax increase is a good way to take from the civilian to the civilian, but there is a certain limit to tax increase. IfTaxOverweight, which exceeds the capacity of enterprises and individuals, will not be conducive to the development of production and will affect future tax revenue.It is the most convenient method to issue more currency, but this method is the most undesirable, because it can make up for it by issuing more currencyfinancial deficitsWill lead to serious inflation, which has the most severe impact on the economy.There are difficulties in raising taxes, but no additional issuance is allowedcurrencyIn this case, it is still a feasible measure to issue national debt to make up the fiscal deficit.Government adoptedIssuance of bondsIt can absorb idle funds from units and individuals and help the country tide over financial difficulties.howeverDeficit national debtThe circulation ofdeflation。
4. Issuance of borrowed and exchanged treasury bonds
National debt is issued to repay the matured national debtfastigium, in order to solve the problem of debt repaymentSource of fundsThe problem is that the state issues debt in exchange for government bonds to repay old debts that are due, which can reduce and disperse the country's debt repayment burden.
Classification
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According to different standards, national debt can be classified as follows:
It usually refers to the national debt issued within one year, mainly to adjust the national treasuryCapital turnoverTemporary surplus and deficiency, and has greater liquidity.
Medium term treasury bonds
It refers to the national debt issued with a term of more than one year and less than 10 years (including one year but not including 10 years), which can make the country's use of debt funds relatively stable due to its long repayment time.
Long term treasury bonds
It refers to the national debt (including 10 years) issued with a term of more than 10 years, which can enable the government to control financial resources for a longer period, butholder's earnings will be subject toMonetary ValueAnd price impact.
Irregular national debt: refers to the national debt issued by the state that does not stipulate the time limit for repayment of principal and interest.The holders of such treasury bonds can receive interest on schedule, but have no right to demand repayment of debts.As issued in the UKPermanentNational debt is of this kind.
According to different regions of issuance, national debt can be divided into national internal debt and national external debt.
National debt: refers to the national debt issued in China. Most of its creditors are local citizens, legal persons or other organizationsLocal currencyPayment.
National foreign debt: foreign debt refers to the general term of the principal and interest of various debts that the permanent residents of a country should repay to the non residents according to the contract.According to the regulations issued by the State Administration of Foreign Exchange《Interim Provisions on Statistical Monitoring of Foreign Debt》And《Detailed Rules for the Implementation of Statistics and Monitoring of Foreign Debt》China's foreign debt refers to all contractual debts undertaken by organs, groups, enterprises, institutions, financial institutions or other institutions in China to international financial organizations, foreign governments, financial institutions, enterprises or other institutions outside China in foreign currency.
Free national debt: also called discretionary national debt, refers to the national debt issued by the state and voluntarily subscribed by citizens, legal persons or other organizations.It is a common form of issuing national debt in contemporary countries, which is easy topurchaserAccept.
Compulsory national debt:political power, compulsory purchase of national debt by citizens, legal persons or other organizations according to prescribed standards.This kind of national debt is generally adopted during the war or when the financial economy is in exceptional difficulty or when it is used to implement specific policies and achieve specific goals.
It refers to compensationfinancial deficitsNational debt of.In implementationDouble budgetInstitutional countries, includingRegular budgetOur national debt is a deficit national debt.
Construction national debt
It refers to the national debt used to increase the country's investment in the economic field.In countries that implement the dual budget system, the national debt included in the capital (investment) budget belongs to the construction national debt.
Special national debt
It refers to the national debt issued to implement a special policy within a specific scope or for a specific purpose.
War debt
War national debt refers to the national debt used to make up for war costs.
According to whether it can be circulated, national debt can be divided intoListed national debtAnd unlisted government bonds.
Listed national debt: also known as marketable national debt, it refers to the national debtStock ExchangeFree tradeNational debt of.
Unlisted national debt: also known as non marketable national debt, refers to national debt that cannot be freely traded.This kind of national debt has a long term and a high interest rate. It is usually issued in registered form.
National debt in the form of national borrowing is generally non-negotiable and transferable, and only bonds issued by the government can be circulated and transferred.
Free transferAnd circulation are the basic attributes and characteristics of national debt. Most national bonds issued by most countries are accessiblestock marketFree trade.
According to the issued vouchers, it can be divided into voucher national debt and bookkeeping national debt.
Credential national debt: refers to the filled treasury bonds used by the stateCollection voucherA bond issued in the form of.
Bookkeeping treasury bonds: also known as paperless bonds, are bonds issued by the Ministry of Finance through paperless means, which record claims in computer bookkeeping and can be listed for trading.
It means that the state does not print physical bonds, but fills in treasury bondsCollection voucherNational debt issued in the form of.It is in the form of treasury bond receipt as proof of debt, and cannot be listedCirculation and transfer, interest accrues from the date of purchase.stayHolding periodIf the holder needs to hold cash in special circumstances, he can go to the purchase outletCash in advance。When cashing in advance, in addition to repaying the principal, the interest shall be paid according to the actual holding days and correspondingInterest rate gradecalculation.[1]
bearer from bond
byPhysical treasury bondsIt is a kind of national debt issued by recording the creditor's rights in the form of physical bonds (with the issuing year, face amount, etc. printed on the bonds) without recording the creditor's name or unit name on the face of the bonds, also known as physical bonds.It is the longest national debt issued in China.[1]
Bookkeeping treasury bonds
Also known as paperless national debt, it is precisely defined as a bond issued by the Ministry of Finance through paperless means, recorded in computer bookkeeping, and can be listed for trading.[1]
Premium issue。That is, the issue price is higher than the face value of the bonds.When a bond matures, the state only pays the principal and interest at the face value of the bond.
Consignment method。That is, the financial institution will buy all the national debt and then sell it to the public. The part that cannot be sold will be borne by the financial institution itself.
Law of sale。That is, the government entrusts sales agencies to sell treasury bonds directly in the financial market.
Payment issuance method.That is, the government's corresponding cash payment is replaced by national debt.
Credential treasury bonds are mainly issued to individual investors.Its sale and payment are made through savings outlets of major banksPostal SavingsDepartment outlets andFinancial sectorAnd the National Debt Service Department.Its outlets are all over the country, and can meet the needs of people to buy and redeem to the greatest extent.Investors who purchase voucher type treasury bonds can hold the money to fill in the form and pay at each outlet during the issuance period to handle the purchase.The issuing point shall fill in the voucher type treasury bond collection voucher, which shall include the purchase date, the name of the purchaser, the type of securities purchased, the purchase amount, and the ID card number, and submit it after filling inpurchaserReceived.Formalities and banksTime depositThe procedures are similar.
Credential government bonds are sold in whole numbers starting from 100 yuan and purchased at face value.After the release period, for customersCash in advanceOfCredential national debt, can be specified byAgencystayControl indicatorsIt will continue to be sold to the public.When an investor purchases after the issuance period, the bank will fill in a voucher for the collection of treasury bonds, and the investor will still purchase at face value.Purchase datemeanValue date。The interest shall be calculated and paid according to the actual holding days and the interest rate of the corresponding grade when cashing（Interest calculationTo the last day of the cashing period at maturity).
To purchase bookkeeping bonds, you can go to securities companies and pilot commercial banksOTC trading。The pilot commercial banks include Industrial and Commercial Bank of China, Agricultural Bank of ChinaBank of ChinaChina Construction BankChina Merchants Bank、Bank of BeijingandBank of NanjingNational debt counters have been opened nationwidetrading system Branch of.
A: Over the counter book entry treasury bonds.It is better to open the book entry national debt through the bankOnline Banking ServiceAccount: directly enter the bank's web page on your home computer, enter your own account number and password, and you can freely trade during trading hours.
Difference between the two: bank transaction is not acceptedtransaction cost The transaction cost of the securities company is about 0.1% - 0.3% of the transaction amount (including commission, etc.).No bookkeeping treasury bonds at the bank counterTransaction commission, but customers buyFull priceIt is usually lower than the full selling price. If you buy and sell on a short-term basis, you mayFloating lossBecause the counter book entry treasury bonds are traded between you and the bank, the price is usually higher when you buy them, and slightly lower when you sell them to the bank. The bank usually encourages investors to hold them for a long time.Although there is no transaction fee, the bank will earn your price difference if you buy and sell on the same day, which is equivalent totransaction cost 。
Buying and selling bookkeeping treasury bonds through the securities company system is the same as buying and selling stocks;Place an order through the delegated system. It is very simple. Enter theNational debt code, and then enter the transaction quantity and price;Generally, after opening an account, the securities company and the counter bank will give the operation manual.
That is to say, a certain proportion of national debt will be repaid by drawing lots according to the number of national debt on a regular basis until the end of the repayment period and all national debt will be paid off after winning the lot.
to useFiscal surplus。stayBudget implementationWhen there is surplus, the surplus will be used to repay the principal and interest of the national debt due that year.
establishmentSinking fund。government budget set upSpecial fundIt is used to repay the national debt. Every year, a special fund is set up from the fiscal revenue to repay the national debt.
Borrow new debt to repay old debt.The government issues new bonds as a source of funds for the repayment of old bonds.The essence is the extension of debt maturity.
laws and regulations
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National debt law
National debt law, refers to theNational developmentTo adjust the social relations arising from the issuance, circulation, transfer, use, repayment and management of national debtlegal normThe general name of.It mainly regulates national (government) and national debtagencyAnd the behavior of government bond investors when they are involved in government bonds, and adjust various relations between government bonds and the main body of government bonds in the process of government bond behavior.
Different from the debt law in the civil law, the national debt law regulates the relationship between the creditor and the debtor that takes the state as the main bodyFiscal lawThe feature that one side of the main body is always the country is consistent, and the national debt is obtained by the countryrevenueAn important way to meetsocial needs , implementState functions。Therefore, the national debt law is an important part of the financial lawSectoral law。However, the core of the social relationship adjusted by the National Debt Law is the relationship of creditor's rights and obligations between the subjects of national debt, that is, the relationship of rights and obligations between the state as the debtor and other creditors. Therefore, the National Debt Law is closely related to the civil law, especially the debt law in the civil law. The theory and specific provisions of the civil law on debt can often be applied to the National Debt Law.
National debt lawAlthough it is an important department law of the fiscal law, it is also quite different from other department laws of the fiscal law such as the tax law. For example, the equality of the subjects of the national debt law is obviously different from other department laws. Although one of the subjects of the national debt law must be the state, in the legal relationship of national debt, the state is the debtor and otherRights subjectIn the case of rights and obligations, whether other rights subjects have creditor's rights and obligations with the state is generally determined by their own will. In the legal relationship of national debt, they are on an equal footing with the state, but in other financial legal relationships, the subordination between subjects is clearly different from the national debt law.In addition, the state has obtainedNational debt incomeThe rights of the rights of the rights and interests are closely linked to their obligations to repay the principal and interests, while other obligees must also perform the payment if they want to enjoy the right to obtain the principal and interestsPurchase of treasury bondsFinancial obligations.So in a sense,National debt lawYes withpublic lawPrivate law of nature.
Overview of legislation
1. Foreign national debt is owned by France
U.S.A;France;Japan;the republic of korea.
2. China's national debt legislation
New China was foundedLater, it was issued in 1950, 1954-1958 and 1980 till nowDomestic public debt。Each periodNational debt issuancePreviously, the State Council formulated regulations on national debt, which specifically stipulated the issuance, transfer, interest rate, repayment of principal and interest and other related management matters of national debt.The national debt regulations are the legal basis for regulating the management of China's national debt and adjusting the relationship between the subjects of national debt.In 1968, the state paid all the principal and interest of domestic and foreign debts. In 1968-1981, China was neitherDomestic debtCountries without foreign debt.In January 1981, the State Council approved thetreasury billRegulations (hereinafter referred to as the "Treasury Bill Regulations"), deciding to issue treasury bills to make up forfinancial deficits, later releasedNational key construction bonds、Treasury bond、Key enterprise bonds、Hedged bonds、Special bondsEtc.By 1992, a treasury bill regulation had been promulgated every year to regulate the issuing objects and methods, the amount and interest rate of issuance, the term for repayment of principal and interest, the discount, mortgage and transfer of treasury bills and other bondsNational debt lawLegal responsibilities, treasury bond management agencies, etc.From 1989 to 1991, an annualSpecial national debtRegulations, which stipulate the issuing objects, issuing amount, issuing period, interest rate and repayment period of special national debt.The current national debt law is the "Treasury Bill Regulations" issued by the State Council on March 18, 1992. However, as the national debt law, the regulations can no longer meet the needs of the development of the socialist market economy.
First, its scope of application is limited totreasury billWe cannot regulate all types of national debt;
Third, there is no standardized approval procedure for issuance.
Therefore, relevant departments are actively drafting《National debt law》In order to clearly regulate the behavior of national debt and the relationship between national debt.
National debt law: refers to the adjustment of national debt in the process of issuance, use, repayment and managementeconomic relationsThe general name of the legal norms of.This is an important branch of the financial law, and many of its basic principles are consistent with the financial law.The adjustment object is the creditor's rights and debt relationship with the state as the main body.Its main characteristics are as follows: First, the national debt law has the dual attributes of public law and private law;Second, the national debt law hasfiscal policyAttribute of;Third, the national debt law hasmacro-controlThe nature of.
Revision of management measures (2023)
In 2023, in order to standardize the establishment of bond underwriting syndicates, ensure the smooth issuance of bonds and the stable development of the bond market,treasury departmentTogether with the People's Bank of China and the China Securities Regulatory Commission, the Administrative Measures for the Establishment of National Debt Underwriting Groups were revised.It is proposed that those who intend to be members of the underwriting syndicate of savings bonds should carry out business activities in accordance with the law. In the past three years, there have been no major illegal records in savings bonds, personal savings deposits, wealth management product sales and other business activities, with a registered capital of no less than 1 billion yuan or a total assets of no less than 30 billion yuan, and with more than 50 business outlets.[15]
Case introduction
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UK government issues RMB bonds
On October 14, 2014, the British government announced the successful issuance of 3 billion yuan toRMBPriced treasury bonds.This makes Britain the first country to issue RMB bondsthe West, whose issuing scale is in non ChinaRMB bondsMedium maximum.[4]
On June 25, 2019, the Ministry of Finance of the People's Republic of China and the Macao SAR Government announced that the central government would issue 2 billion yuan of government bonds in Macao on July 4, 2019.[5]
U.S.A
On October 4, 2022 local time, according to American media,US TreasuryReporteddata display, USATotal national debtIt exceeded $31 trillion for the first time on the 3rd.[9]
On January 2, 2024 local time, the US Treasury Department released a report: the total amount of US treasury bonds reached US $34 trillion for the first time, rising from US $33.911 trillion to US $34.001 trillion.[17]
Purchase method
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Electronic savings bonds
Individual investors can purchase through the members of the savings and treasury bond underwriting syndicate (the list can be inquired through the issuance announcement of the "government bond management" special column on the website of the Ministry of Finance) and the online banking or mobile banking of some members.To purchase electronic savings bonds, an individual investor must first open an individual treasury bond account and capital account through the counter, online banking or mobile banking of members of the savings and treasury bond underwriting syndicate, and purchase them at the counter of any outlet of members of the savings and treasury bond underwriting syndicate, or through online banking or mobile banking, with valid personal identity documents during the sale period.
Credential savings bonds
Individual investors can purchase through the outlets' counters of members of the underwriting syndicate of savings bonds (the list can be inquired through the issuance announcement of the "government bond management" special column on the website of the Ministry of Finance).During the sale period, individual investors can go to the counter of member outlets of the savings bond underwriting syndicate with valid ID cards, subscribe by cash payment or transfer, and obtain paper subscription vouchers.
Bookkeeping treasury bonds
Individual investors can purchase through the counter business establishment of the national inter-bank bond market (the list can be queried through the website of the Central Clearing Corporation), or through the securities companies that carry out bond brokerage business in the stock exchanges (the list can be queried through the website of the Securities Association of China).
Ultra long term special treasury bonds issued in 2024
The ultra long term special treasury bonds issued in 2024 are bookkeeping treasury bonds with three maturities of 20 years, 30 years and 50 years. The specific purchase operation is handled according to the above bookkeeping treasury bond purchase process.[23]
