China to front-load part of 2027 local government bond quota before year-end

China plans to give localities part of their 2027 new local government debt limit before the end of this year, so they can complete budget procedures and begin issuing bonds as early as January. Under a standing authorization, up to 60% of the current year's new quota may be advanced. With the 2026 new limit at Yuan 5.2 trillion ($779.8 billion), the cap on the advanced amount is Yuan 3.12 trillion.

At a recent press conference on fiscal revenue and expenditure for the first three quarters, Zhao Zeyong, Deputy Director-General of the Ministry of Finance's Debt Management Department, said the ministry will step up work to advance part of the new local government debt limit for 2027 ahead of schedule. The