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.
Hong Kong’s Northern Metropolis development is progressing. Financial Secretary Paul Chan said on July 26 that four new development areas have started construction, with over 520 hectares of land resumed and about 120 hectares leveled. Over the next five years, the project will provide more than 70,000 housing units and 1 million square meters of economic floor space. Over the next decade, it will deliver about 240,000 housing units, over 10 million square meters of economic floor space, and create 500,000 jobs. Public space standards have been raised by 30% to 3.5 square meters per person. The Hong Kong-Shenzhen Innovation and Technology Park in the Lok Ma Chau Loop has attracted over 90 tech enterprises, with five more buildings to be completed this year.
Multiple leading indicators for infrastructure investment in China show signs of recovery, with local governments rapidly advancing major projects across the ‘six networks’ covering transport, energy, and water. Accelerated disbursement of ultra-long-term special government bonds is building momentum for stable investment. Analysts expect infrastructure investment growth to stabilize and rebound in the second half of the year, providing strong support for overall fixed-asset investment.
China State Construction has secured several major projects with a combined value of RMB 13.39 billion, representing 0.6% of its audited revenue for 2025. The projects include the Beijing Yunmengshanju elderly care community (RMB 3.59 billion), the Liaoning Hengli Heavy Industry Dalian shipyard (RMB 2.51 billion), the Shenzhen Xili station construction (RMB 4.70 billion), and the Xinjiang Tacheng Shencheng intelligent computing center (RMB 2.59 billion).