As of August 2, 2026, local government bond issuance totaled approximately RMB 6.61 trillion, including RMB 2.41 trillion of new special bonds. This represents 55% of the annual quota of RMB 4.4 trillion, below the 63.1% pace in the same period of 2025. Guangdong led with RMB 287.025 billion, followed by six other provinces. The Politburo has urged faster use of fiscal funds and bond proceeds.
China is accelerating major infrastructure construction under the ‘two priorities’ and ‘six networks’ plan, with 2026 investment estimated to exceed 7 trillion yuan. The Three Gorges New Waterway started construction in June, marking a landmark project. In the first half, internet services investment rose 39.9%, water transport 19.8%, power supply 19.4%, and air transport 11%, while private capital in water network projects surged 85.8%. Full-year ultra-long bonds of 800 billion yuan have been allocated, and projects are entering the peak construction season to translate policy into tangible progress.
China's National Development and Reform Commission and National Energy Administration have issued the 15th Five-Year Plan for Building a New-Type Power System, requiring existing coal-fired units to undergo wide-load high-efficiency retrofits and limiting the coal consumption increase under low-load operation to within 25%. The plan supports coal power and new energy integration projects, and calls for flexibility retrofits of all eligible existing units by 2030. Combined heat and power units must achieve minimum power output below 40%, with heat-power decoupling encouraged to maintain stable heating.