China Unveils 2026 Ultra-Long Bond Plan to Fund Strategic Projects

China's finance ministry announced plans to issue ultra-long special bonds in 2026, earmarking proceeds for major infrastructure projects and industrial upgrades. The MOVE signals a deliberate pivot toward sustainable growth over short-term stimulus, with parallel commitments to reduce local government debt burdens.

Policy makers emphasized calibrated use of monetary tools, including potential rate cuts and reserve requirement adjustments, to maintain systemic liquidity. The bond program aligns with conclusions from December's Central Economic Work Conference, which prioritized manufacturing-led expansion while cautiously nurturing domestic consumption.

Notably absent were specifics on funded projects, though officials referenced supporting equipment modernization and trade-in programs. The strategy reflects China's transition from countering U.S. trade pressures to securing long-term economic stability through controlled fiscal measures.