Investment Expansion Continues: The pace of issuing special bonds accelerated in June.

As With more than half of the 2025 timeline already behind us, various regions are showing new trends in the use of special local government bonds. Recently, many regions have disclosed additional areas earmarked for these special bonds, including: For the first time, special-purpose bonds will be used for government investment funds, and additional arrangements will be made to cover land acquisition and storage, the purchase of existing commercial housing, and the resolution of overdue payments owed by local governments to enterprises. These initiatives not only mark a significant shift in local governments’ financing methods but also inject new vitality into the market.

Special-purpose bonds are being directed toward government investment funds for the first time.

On June 20, the Beijing Municipal Bureau of Finance released the information disclosure documents for the sixth batch of government bonds in 2025, planning to issue special bonds with a total amount of 10 billion yuan and a term of 10 years. This marks... Special-purpose bonds are being used for the first time in government investment funds. 。

Resolve overdue payments to enterprises and promote a healthy economic cycle.

Hunan Province, Yunnan Province, the Guangxi Zhuang Autonomous Region, and other regions have also successively announced their... The 2025 budget adjustment plan includes a substantial allocation of special-purpose bonds aimed at addressing the issue of local governments’ overdue payments to enterprises. This measure is designed to ease liquidity pressures on businesses and help foster a virtuous cycle in the economy. It represents an important step in implementing the “comprehensive debt-resolution plan” and holds positive significance for improving the business environment.

Accelerate the issuance pace and support the resolution of debt risks.

From Since June, as the issuance of special refinancing bonds has gradually come to an end, the pace of issuing new special-purpose bonds—especially those specifically intended for debt resolution—has noticeably accelerated. As of June 19, 33 provinces and cities have issued special-purpose bonds totaling over 1.7 trillion yuan to refinance hidden debts, reaching 86.8% of this year’s allocated quota. It is expected that by the end of the third quarter, the full annual quota will likely be fully issued.

Regional disparities are significant, with a focus on prioritizing key areas.

It is worth noting that, Among the newly issued special-purpose bonds, provinces with high debt ratios but strong economic momentum—such as Jiangsu and Shandong—account for a significant share. Meanwhile, regions with relatively weak economic foundations, like Guizhou and Yunnan, have also become key targets for support in debt-reduction efforts. This distribution pattern reflects the country’s differentiated strategies and varying degrees of support for debt-reduction efforts in different regions.

Looking ahead, as the issuance of special refinancing bonds nears completion and the second batch of additional quotas is allocated, the pace of issuing special-purpose bonds—especially those designated as special new special-purpose bonds—will further accelerate. Jiangxi, Xinjiang, and other regions are set to soon... The issuance of special, newly added专项 bonds totaling over 100 billion yuan in late June signals that local debt management efforts will enter a new peak in the second half of the year.

The broadening of the investment areas for local government special bonds not only represents a significant breakthrough in the existing policy framework but also constitutes an important step to meet the economic development needs of the new era. By making effective use of special bond instruments, we can not only ease fiscal pressures at the local level but also boost market vitality and support high-quality economic development.