Overall bonds issued by local governments in China in the January-May period this year amounted to RMB 4.7219 trillion ($0.7 trillion), up nine percent year on year, according to China’s Ministry of Finance.
In particular, new special-purpose bonds issued by local governments in China in the given period totaled RMB 1.4951 trillion ($0.22 trillion). According to the Government Work Report for 2026, China plans to issue new local bonds totaling RMB 4.4 trillion in 2026. In the first five months this year, the newly issued special-purpose bonds accounted for roughly 34 percent of the annual quota.
Local governments have taken proactive and early action, aiming to stabilize economic growth, which has exerted a positive impact on the real estate industry to a certain degree. The special bonds have been used in acquiring commercial housing in some provinces of China, renovating urban villages, and in the construction of affordable housing to absorb housing inventory.
