Why does China have to buy other countries government bonds?

First of all, let's talk about the formation of foreign exchange reserves, foreign investors come to China to invest so they bring dollars, Chinese exporters export goods to get dollars, but the dollars cannot be circulated in China, so they sell their dollars to the central bank, in exchange for yuan into their own pockets, the central bank obtained these dollars are foreign exchange reserves. It can be seen from this that foreign exchange reserves are not real wealth, but more of a "value support" for foreign investors and Chinese exporters to provide a "value support" for the RMB in the pockets of foreign investors and Chinese exporters, which means that "with these US dollars, the RMB in your pockets is not waste paper, but supported by valuable US dollars", and the real wealth is the RMB in the pockets of foreign investors and Chinese exporters, and they have the final say on how to use it. Foreign reserves are all foreign currencies that cannot be circulated domestically, so they cannot be used to develop domestic industries, including the tertiary industry, and if you invest in foreign countries, the real economy is risky, and you can only invest in projects with little risk, such as U.S. Treasury bonds.

In addition, there will be a demand to exchange RMB for US dollars and take them out of the country for use at any time, so projects that need to be invested can be cashed out at any time, and the advantages of treasury bonds are reflected again. Finally, China and the United States may have political deals, such as China buying U.S. Treasury bonds, and the U.S. refraining from causing trouble for China

There are two aspects to buying other countries' government bonds. 1: Help other countries overcome difficulties. 2: In order to profit from it.

There is a political dimension to this, as well as an economic investment.

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The purpose of the state issuance of treasury bonds is as follows:

1. Balance fiscal revenue and expenditure.

When the expenditure of the current year is greater than the income, that is, when the income is beyond the expenditure, the state will find the national debt and borrow from the public to make up for the fiscal deficit.

For example, the issuance of deficit government bonds.

2. Raise construction funds.

National large-scale infrastructure and public facilities.

The amount of capital required for construction projects is usually large, and the project implementation period is long, and the state can raise funds for the project through the issuance of medium- and long-term treasury bonds, such as the issuance of construction bonds.

3. Repay the maturing national debt.

At the maturity of the issued treasury bonds, if the treasury funds.

If the situation is tight, then new bonds can be issued, and the new bond funds raised can be used to repay the principal and interest of the old maturing bonds.

4. Raise military spending.

In times of war, military expenditures are enormous, and in the absence of other means of financing, the state will issue war national bonds to cover the costs of war.

The reason why the state issues treasury bonds is mainly to regulate the amount of money in circulation. ** Raise funds for infrastructure construction to boost domestic demand.

The state needs a large amount of medium and long-term funds to carry out the construction of infrastructure and public facilities, and through the issuance of medium- and long-term treasury bonds, a part of the short-term funds can be converted into medium- and long-term funds for the construction of large-scale national projects to promote economic development.

** The purpose of an open market operation is to regulate the amount of money in the market. For Western countries, the second is of greater significance, when there is too much money in the market, ** through the issuance of government bonds to collect money in the market to prevent inflation, regulate interest rates.

**Through the issuance of bonds, the idle funds of units and individuals can be absorbed, and the country can tide over the period of financial difficulties. However, the issuance of deficit government bonds must be moderate, otherwise it will also cause serious deflation.

There is also borrowing and swapping treasury bonds, which are issued to repay mature treasury bonds, and at the peak of debt repayment, in order to solve the problem of debt repayment funds, the state issues borrowing and swapping treasury bonds to repay the old debts that are due, "which can reduce and disperse the country's debt repayment burden."

First of all, national debt is an important part of a country's fiscal expenditure, if the country wants to build any big project, or do something big, it needs a lot of money, then the country may choose to issue national bonds, borrow money from residents and financial institutions, remit into a large amount of money, and concentrate on doing big things. For example, when the epidemic was serious last year, my country issued special treasury bonds to fight the epidemic, and what did I do with the money, of course, it was to gather the strength of the whole country to fight the epidemic, such as increasing the production of sanitary products, the construction of Leishenshan Huoshenshan Hospital, and so on. Treasury bonds raise funds for the country.

Secondly, the state does not take your money for nothing, what is debt, that is, debt, the state lends you money, not only to repay you so much when due, but also to give you interest, then this provides a good investment choice for many residents, especially the elderly, the elderly, they attach great importance to the safety of saving money and investment, and the national debt is guaranteed by the country's credit, it is impossible not to repay your money, it is risk-free, so it is actually very popular with residents.

Treasury bonds also play a role in promoting economic development, and if the state feels that the current economic situation is not very good, it can adopt a proactive fiscal policy, issue treasury bonds, raise funds, increase the intensity of infrastructure construction, and the state will invest in new projects to provide jobs for everyone, and the state will buy those products that may be unsalable because of the bad economy, so as to promote economic growth.

The purpose of issuing treasury bonds is to raise funds. The issuance of bonds is for financing, which is easy to understand that there is no money in hand for the time being, but money is needed, so bonds are issued, such as corporate bonds, local bonds, and national bonds. Generally speaking, each country issues its own government bonds, which can be purchased by the average resident as an investment.

Because the treasury bonds are backed by the state's credit, the treasury bonds themselves have a high credit rating, low default risk, and the interest rate level is usually higher than the benchmark interest rate of bank deposits in the same period, so many people regard treasury bonds as a method of investment and financial management.

The purpose of a state's issuance of treasury bonds is to concentrate nongovernmental funds and forces to concentrate power to do big things, and this is a means of fund-raising commonly used by the state when carrying out some major construction, and it is also conducive to promoting social development and improving the living standards of the people at the grassroots level.

Treasury bonds are national debts, which usually refer to the funds obtained by a country with **** as the main body and according to the credit principle of borrowing and repaying, which is a kind of paid and non-recurring fiscal revenue. Treasury bonds are voluntary, compensatory, and flexible. Treasury bonds are also one of the means of the state's macroeconomic regulation and control policy, and the issuance of treasury bonds can make up for the fiscal deficit, raise funds for national construction, and adjust the amount of money and market interest rates.

A country issues treasury bonds in order to expand the funds available in the treasury and better build the country to serve the people.

Generally speaking, the purpose of the state to issue treasury bonds is to raise funds for purposes such as making up for fiscal deficits, project construction, and maintaining the normal operation of the first department. In addition, objectively, we have been able to share the fruits of national development with the people.

The purpose of the state's issuance of treasury bonds is to further invigorate the economy and engage in construction, which is conducive to the further development of the country.

If you don't have enough money, you ask someone else to borrow money. When the state does not have enough money, it issues government bonds. The national debt is a part of the fiscal revenue, and at the same time it is a liability.

This issuance of treasury bonds is for the sake of the country's economic development. So it will bring benefits to the country, which will increase revenue.

This can promote the turnover of state funds, be conducive to the rapid development of the economy, and ensure that the country's financial affairs are on a healthy track.

I think that the issuance of treasury bonds is a good thing for the benefit of the country and the people, so I think that the reason why a country issues treasury bonds is to make up for the national treasury.

Why does the state issue government bonds? He discovered that the purpose of the national debt was to balance the balance of the fiscal balance. Then raise funds for construction. In the repayment of the due national debt, raise military spending.

The situation of the national debt you asked, this is the same as ours personally. In order to better develop the economy, the state borrows personal money to invest in development. After making money, it is better to return it to the individual.

The issuance of treasury bonds by a country is the most effective way to withdraw money, that is, to reabsorb the money from the society into the national treasury, which is conducive to the economic development of our country.

Only by issuing treasury bonds can the state have economic development support, and only after they issue treasury bonds can they have funds to invest in some important infrastructure projects.

In fact, the national debt is an IOU borrowed from the people, and the state is repaying the people's money within a specified number of years.

Treasury bonds are also a type of bonds, which are a way to raise funds, but the fundraiser is the state. It will also return to investors on a regular basis.

It is normal for a country to issue government bonds.

Because the bank is a distribution agency, the treasury bond is a bond issued by the first class, and the interests of the bank distribution are small, and others such as the first class, the interests of the bank distribution are large, so the bank will generally not recommend you to buy treasury bonds in order to obtain higher interests. No interest shall be calculated and paid for the early redemption of treasury bonds for less than 6 months, and interest shall be calculated at the coupon rate and deducted for 180 days for 6 months and less than 24 months, and interest shall be calculated at the coupon rate and deducted for 90 days for 24 months and less than 36 months; The interest will be calculated at the coupon rate for 36 months and less than 60 months after the tenth term is held, and the interest will be deducted for 60 days. Although the vast majority of wealth management products cannot be redeemed in advance, because of the short term, it takes only a few more months to get back the principal and income.

If it is only six months, it is obvious that the income of wealth management products can reach about 2%, while the treasury bonds have no interest on a penny.

Article 29 of the People's Bank of China Law of the People's Republic of China stipulates that the People's Bank of China shall not overdraft the treasury and shall not directly subscribe for or underwrite treasury bonds and other bonds. Young people don't have as much free time.

There are two main kinds of treasury bonds, one is electronic treasury bonds, the other is voucher treasury bonds, this issuance is voucher treasury bonds, can only be purchased at the bank counter, and the day of sale is a working day, young people generally need to go to work, there is no spare time to run to the bank door early in the morning to queue for several hours. Young people have poor stability in life and high liquidity for funds. Young people are in the initial stage of their careers or rising periods, and their lives lack stability, and this period is the time to spend money, such as getting married, buying a house, buying a car, having children, etc., spending a lot of money, and finally saving a sum of money but spending it quickly, the liquidity of funds is particularly important for young people, so it is not realistic to use the money to buy 3-year or 5-year treasury bonds.

Treasury bonds are bonds issued by the state, and the security and profitability are relatively high in many low-risk financial management, after the state issues treasury bonds, it is generally underwritten by the bank, but when customers go to the bank to consult the wealth management business, the bank never recommends buying treasury bonds, so why is this?

Why don't banks recommend buying Treasury bonds?

1.Because the bank is a distribution agency, the treasury bond is the first bond issued, the interest of the bank distribution is less, and the other such as the ** class, the interest of the bank distribution is large, so the bank will generally not recommend the treasury bond to you in order to obtain higher interests.

2.Treasury bonds have a limit on the amount of treasury bonds issued, and many of them attract many customers to rush after each issuance of treasury bonds, so that many customers will not be able to buy treasury bonds.

3.Banks will have the task of collecting deposits every year, but treasury bonds are not counted as bank deposits, and only fixed or current deposits will be counted as bank deposits, so banks will not recommend buying treasury bonds.

The above is the reason why "the bank does not recommend buying treasury bonds", in general, the bank does not recommend buying treasury bonds because of their own interests, as well as the reason why the treasury bond quota is relatively tight, the above is all the content, I hope it will help you.

The central bank issues treasury bonds every month, so some experienced savers will do their homework well in advance and rush to buy treasury bonds as soon as the time comes. Some older friends know very well about treasury bonds, because in the early years, banks did not launch wealth management products, and treasury bonds can be said to be very hot at this time. After the 10th of each month, depositors will come to the door of the bank, and generally wait less than half an hour for the treasury bond products to be sold out.

Due to the development of the financial market, banks have become more and more abundant products, so the advantages of treasury bonds have been concealed, and many young people are very unfamiliar with treasury bonds, and they have never been exposed to treasury bonds.

First of all, the security and yield of treasury bonds are relatively high, relatively tight, and it is difficult to grab, secondly, treasury bonds are not issued at all times, and finally treasury bonds are not counted as bank deposits, and banks will have the task of collecting deposits every year, and only regular or current deposits will be counted as bank deposits, so banks will not recommend buying treasury bonds.

Treasury bonds are bonds issued by the state as the main body, which have the highest credit and are recognized as one of the safest investment vehicles, generally known as the "risk-free rate of return".

China has national debt. Treasury bonds refer to the deficit of the national debt.

or for other reasons, a kind of bond issued to the public on the basis of national credit. After the maturity of the bonds, the repayment of principal and interest is carried out, which is very low-risk, basically zero risk, and each country will issue a certain amount of government bonds. Therefore, China also has a national debt.

Extended Materials. Savings Treasury bonds.

Electronic) issuance quota allocation method is as follows:

1. Before the start of the issuance, the Ministry of Finance.

Together with the People's Bank of China.

According to the provisions of the issuance notice, all or part of the maximum issuance amount of the current savings treasury bonds (electronic) shall be used as the basic distribution quota and distributed to the underwriting syndicate members in proportion to the basic distribution quota of each underwriting syndicate member. The remaining issuance quota is used as a mobile consignment quota for each underwriting syndicate member to grab during the issuance period.

2. During the issuance period, the members of the underwriting syndicate can pass the savings treasury bond (electronic) business management information system with the Ministry of Finance from 8:30 to 16:30 every day.

hereinafter referred to as the treasury bond system) online application for grabbing mobile consignment quota. The upper limit of a single application for the mobile distribution quota by the members of the underwriting syndicate is 10% of the basic distribution quota of their current treasury bonds, and the interval between two applications for the same treasury bond shall not be less than 1 minute. The treasury bond system processes the application for grabbing the mobile consignment quota in accordance with the principle of priority of receiving time, and feeds back the processing results to the members of the underwriting syndicate.

3. For the scraping application that meets the requirements, if the amount of mobile consignment sales not allocated by the Ministry of Finance is greater than the amount applied for by the underwriting syndicate members, it will be allocated to the underwriting syndicate members according to the application amount; If the amount not allocated by the Ministry of Finance is less than or equal to the amount applied for by the members of the underwriting syndicate, all the unallocated mobile sales quota will be allocated to the members of the syndicate.

4. At the end of each day of the issuance period, the members of the underwriting syndicate shall transmit the relevant business data of the savings treasury bonds (electronic) of the day to the treasury bond system, and after passing the verification of the total account data of the current treasury bonds, if the actual sales volume of the day is greater than the remaining basic sales quota at the beginning of the day, the members of the underwriting syndicate shall clear all the remaining issuance quotas; If the actual sales volume of the day is less than or equal to the remaining basic sales quota at the beginning of the day, the members of the underwriting syndicate shall clear the mobile sales quota of the day.

5. If the members of the underwriting syndicate fail to pass the verification of the total account data of the current treasury bonds, the remaining issuance quota (including the unsold basic distribution quota and the mobile sales quota) on the same day will be frozen, and the sales of the treasury bonds will be stopped on the next day.