China issues 3.1 trillion yuan in local government bonds in first quarter

(ECNS) - China issued 3.1 trillion yuan ($456 billion) worth of local government bonds in the first quarter of 2026, including 1.42 trillion yuan in new debt, according to data released by China's Ministry of Finance on Friday.

The ministry said local governments issued 1.16 trillion yuan of special-purpose bonds and 260 billion yuan in general bonds between January and March. A further 1.7 trillion yuan in refinancing bonds was also issued to roll over existing liabilities.

Newly issued local government bonds had an average maturity of 16.7 years during the period, with an average interest rate of 2.17%, the ministry said.

China's outstanding local government debt stood at 57.3 trillion yuan by the end of March, including 39.46 trillion yuan in special debt and 17.8 trillion yuan in general debt.

Local governments repaid over 670 billion yuan in bond principal in the first quarter, including 580.6 billion yuan through refinancing bond issuance. Interest payments totaled 361.8 billion yuan, according to the data.

Local government borrowing has become an important source of funding for infrastructure projects and regional economic support measures, as China works to stabilize growth amid continued weakness in the property sector and slower domestic demand.

(By Zhang Jiahao)