August 4, 2025 01:35 AM GMT China Financials | Asia Pacific Restored VAT on government and financial bonds to modestly support yields Key Takeaways We estimate the VAT from financial bonds will increase government income by Rmb40-50bn annually, but the effects will take to time to show as only bonds issued after 8 Aug will be affected. While the resumed VAT will push up financing costs for firms involved in financial bond issuance, the bulk of the cost will be born by policy banks as commercial banks only a ...