China's Policy Banks Rush Bond Issuance Ahead of New Tax

Imagine China's government has a few banks that help with things like farming and trade.

These banks often borrow money by selling bonds.

Now, the government is adding a new tax on the money people earn from these bonds, starting August 8th.

Because of this, the banks are trying to sell lots of bonds right now, before the tax, so they can get money at a cheaper rate.

This might make the price of bonds change, making investors maybe less interested.