China's local government bond issuance accelerates in Q1 to boost infrastructure investment

China kicked off 2026 with a surge in local government bond issuance, reaching over Yuan 3 trillion ($435 billion) in Q1, which is set to provide a strong boost to infrastructure projects nationwide, targeting key areas such as transportation, municipal facilities, and affordable housing, and helping to fill the investment gap left by major projects winding down from the 14th Five-Year Plan (2021-2025).

According to data from Wind Information, nationwide local government bond issuance reached Yuan 3,105.9 billion in Q1 of 2026, up 9.3% from Yuan 2,842.1 billion a year earlier. During the same period, newly issued special bonds totaled Yuan 1,159.9 billion, a substantial 20.8% increase from Yuan 960.2 billion in