The issuance of special bonds this year has exceeded 1 trillion yuan, a year-on-year increase of over 40%.

Reporter: Han Yu

On March 24, Zhejiang issued a batch of local government bonds, which includes special bonds totaling 24.787 billion yuan. This batch of special bonds has maturities of 5 years, 15 years, 20 years, and 30 years, with the raised funds directed toward projects such as shantytown renovations and sewage treatment.

This is a microcosm of the accelerated issuance of new special bonds across various regions this year. According to Wind data, as of March 24, approximately 1.0712 trillion yuan of new special bonds have been issued nationwide, surpassing one trillion yuan, with a year-on-year increase of 41% (the issuance scale during the same period last year was about 758.3 billion yuan). In fact, although the first quarter of this year has not yet ended, the issuance scale of 1.0712 trillion yuan has already exceeded the total issuance of new special bonds in the first quarter of 2025 (about 960.2 billion yuan).

“The significant acceleration in the issuance of new special bonds this year, surpassing the pace of the same period last year, is a clear reflection of proactive fiscal policy. This not only quickly fills funding gaps for major projects and generates physical work volume early but also sends a positive signal for stabilizing market expectations, aligning with the construction rhythm of projects in the first quarter,” said Song Xiangqing, vice president of the China Society of Commercial Economics, in an interview with the Securities Daily.

Zhu Hualei, a senior investment advisor at Shaanxi Jufeng Investment Consulting Co., Ltd., also told reporters that the progress in the issuance of new special bonds this year is significantly faster than the same period last year. This phenomenon is a direct manifestation of the proactive fiscal policy and the emphasis on quality and efficiency in 2026. The issuance of new special bonds with moderate scale, precise direction, and standardized management provides strong support for achieving a good start in the 14th Five-Year Plan.

Looking back at 2025, new special bonds effectively played a role in driving and guiding government investment. In 2025, the new local government special debt limit in China reached 4.4 trillion yuan, an increase of 500 billion yuan from 2024, primarily directed toward transportation infrastructure, affordable housing projects and urban renewal, social undertakings, agriculture, forestry, water conservancy and ecological protection, and infrastructure for strategic emerging industries, supporting over 48,000 projects, with project capital exceeding 300 billion yuan, helping to expand effective investment.

This year’s Government Work Report clearly proposed to allocate 4.4 trillion yuan for local government special bonds, improve the management of the negative list for special bond projects, and pilot self-examination and self-issuance, focusing on supporting major project construction, replacing hidden debts, and settling government arrears.

Song Xiangqing stated that the rapid rollout of new special bonds will directly boost the growth rate of infrastructure investment, with a focus on supporting transportation, municipal projects, new infrastructure, and livelihood projects, leveraging social capital to create a multiplier effect, and driving the recovery of industries such as building materials and construction machinery. For local economies, it can ensure the landing of major projects, fill the gaps in infrastructure, replace hidden debts, settle government arrears, improve the business environment and corporate cash flow, and form a virtuous cycle of expanded investment, enhanced industry efficiency, and increased employment, solidifying the momentum for regional economic recovery.

Zhu Hualei believes that the “acceleration” of new special bonds in the first quarter of 2026 is not just a simple increase in investment, but also a manifestation of a combination of “stabilizing growth, preventing risks, and adjusting structure.” It will support economic growth in the short term through infrastructure investment and inject strong and sustainable momentum for high-quality local economic development in the medium to long term through the cultivation of new industries.

(Editor: Wen Jing)

Keywords:

                                                            Special Bonds