China may raise 6 trln yuan in new debt over 3 years report
Part of the funds to ease local govt debt burden Caixin Global
Report follows finance ministry pledge to sharply boost debt

BEIJING, Oct 15 Reuters China may raise an additional 6 trillion yuan 850 billion from special treasury bonds over three years to stimulate a sagging economy, local media reported, a figure that failed to revive sentiment in the country39;s stock market.

The Caixin Global report, which cited sources with knowledge of the matter, comes after Finance Minister Lan Foan on Saturday said Beijing will significantly increase debt, although the absence of details on the size and timing of the fiscal measures disappointed some investors.

The size of the expected fiscal package has been the subject of intense speculation in financial markets. Chinese shares hit twoyearhighs earlier this month on news of the stimulus, before retreating in the absence of official details.

On Tuesday, stocks dipped about 0.3, suggesting little excitement among investors about the reported amount, although analysts say it would at least stabilise growth in the nearterm.

This is in line with our expectations, said Xing Zhaopeng, ANZ39;s senior China strategist. For next year, we still think a growth target of around 5 is likely to be maintained. So, for a 5 growth rate, that should be enough.

Reuters reported last month that China planned to issue special sovereign bonds worth about 2 trillion yuan 285 billion…