China to Make Rare Mid-Year Budget Tweak, Issue Sovereign Debt

(Bloomberg) — China’s legislature approved a plan to raise the fiscal deficit ratio to about 3.8% of gross domestic product, the official Xinhua News Agency said Tuesday. That would be well above the 3% set in March, which was widely considered a red line for the nation.

The plan includes issuing additional sovereign debt worth 1 trillion yuan ($137 billion) in the fourth quarter to support disaster relief and construction.