China Ramps Up Sovereign Debt Issuance

China's finance ministry is increasing bond issuance to boost spending and support the economy, aiming to meet a 5% GDP target. Local governments are also issuing bonds to manage hidden liabilities and finance projects. The People's Bank of China (PBOC) is providing liquidity support amid a financial system squeeze, using tools like reverse repos. Rising bond yields and signs of economic recovery, such as improved industrial profits, indicate potential continued liquidity measures.

What is the significance of the debt-for-equity swap program mentioned in the text?

How has the People's Bank of China (PBOC) responded to the liquidity squeeze in the financial system?