China accelerates project funding as policymakers seek to stabilize infrastructure investment

(ECNS) - China is stepping up funding support for infrastructure projects, with policymakers betting that faster issuance of local government special bonds and new policy financing tools will help stabilize investment growth in the second half of the year.

Authorities have allocated the full 800 billion yuan ($111 billion) earmarked for major national projects this year, while issuance of special-purpose bonds accelerated sharply in June, reaching more than 570 billion yuan, the highest monthly level of 2026.

Economists said additional fiscal support remains available.

Wang Qing, chief macro analyst at Golden Credit Rating, estimated local governments could issue up to 1.2 trillion yuan more in special bonds this year.

China also plans to deploy 800 billion yuan in new policy-based financial instruments, which analysts expect to be concentrated in the second half.

(By Zhang Jiahao)