During a press conference on October 8, 2023, Zheng Zhanjie, the Director of China’s National Development and Reform Commission, revealed the government’s plans to continue issuing super-long-term special government bonds next year. This move is aimed at bolstering support for two critical areas: the implementation of major national strategies and strengthening security capabilities in key sectors.
Zheng outlined a series of incremental policies designed to promote effective investment. He stressed the importance of expanding productive investment and speeding up the delivery of tangible results.
He emphasized the necessity of maximizing this year’s funding sources. A total of 700 billion yuan allocated from the central budget has already been designated for these key projects and “two new” initiatives, which focus on large-scale equipment upgrades and appliance trade-ins. Additionally, 1 trillion yuan in super-long-term special government bonds specifically for these initiatives has been fully allocated to local governments and targeted projects. Zheng urged local governments to expedite the issuance and utilization of special bonds to kickstart these projects.
Looking ahead, China plans to actively prepare and release lists of “two key” projects and central budget investment plans for the upcoming year. Zheng noted that there’s a significant demand for funding in critical areas such as ongoing infrastructure projects, urban migration integration, high-quality farmland construction, underground pipeline development, and urban renewal. He reaffirmed the government’s commitment to continue issuing super-long-term special bonds with optimized allocations to further support these construction efforts. Furthermore, he announced that the government would accelerate the release of 100 billion yuan in central budget investment plans along with a corresponding list of “two key” projects to ensure timely preliminary work and the early start of projects.
In terms of enhancing investment policies, Zheng mentioned that the government aims to broaden the use of special bonds as capital in appropriate sectors, adjusting their scale and ratio. He indicated that specific reform measures would be announced soon to expand the scope of local government special bonds. Additionally, efforts will be made to stimulate private investment, implement innovative collaborations between government and social capital, and encourage private capital participation in the development of new infrastructure projects.
