The newspaper also said the Government almost certainly would have to resort to coercive administrative sales if its issues were to be fully subscribed this year.

Sales of the first two tranches, five billion yuan in six-month bonds and 10 billion yuan in three-year bonds, did not go well because of ''hesitation'' from institutions charged with their disposal, it said.

However, the newspaper did not say how many bonds had been sold so far.

A failure of the bond sale could pose serious problems for the Ministry of Finance, which already has included revenue raised from the package in its draft budget to be delivered to the National People's Congress next week.

Most analysts agreed the Government had no option but to again resort to forced sales of bonds to state-run enterprises and work units, despite the unrest that might create.

Sales of treasury bonds through the market have declined rapidly over the past three years as more attractive investments have become available on China's share markets.

In 1991, 32 per cent of all treasury bonds issued were sold on the open market, in 1992 that fell to 12 per cent, and last year plummeted to just five per cent.

This year, with twice as many bonds on offer as last year, the figure is expected to be even lower.