2026 Trillion-Yuan Local Government Bond Issuance Commences with Shandong's Lead

Published: Jan 5, 2026 13:41

Save

[This Year's Trillion-Yuan Local Government Bond Issuance Kicks Off]

The fundraising through local government bond issuance in 2026 has begun. According to information disclosed by the Shandong Provincial Department of Finance, on January 5, 2026, Shandong Province issued 72.381 billion yuan in local government bonds, making it the first province in the country to issue such bonds this year and marking the official start of local government bond issuance for 2026. Against the backdrop of significant fiscal revenue and expenditure imbalances at the local level, funding for major projects and repaying old debts has increasingly relied on bond issuance. To expedite the role of local government bond funds in stabilizing investment, expanding domestic demand, and addressing weaknesses, thereby promoting stable economic performance in 2026, the Ministry of Finance had already allocated part of the 2026 new local government debt quota in advance by the end of last year. This enabled local governments, as in previous years, to start issuing bonds in January to support major projects, stabilize investment and the economy, and repay old debts to mitigate debt risks. Based on disclosures from various sources, the scale of local government bond issuance in the first quarter of 2026 is expected to exceed 2 trillion yuan.

Data Source Statement: Except for publicly available information, all other data are processed by SMM based on publicly available information, market communication, and relying on SMM‘s internal database model. They are for reference only and do not constitute decision-making recommendations.

For any inquiries or to learn more information, please contact: lemonzhao@smm.cn

For more information on how to access our research reports, please contact:service.en@smm.cn

Related News

11 hours ago

5.20 SMM Global Steel Daily Report

China Steel billet export prices continued to decline today, falling by about 3-4 USD/tonne, with 3SP 150*150mm FOB quotes at 472-475 USD/tonne. It was learned that as export billet prices continued to fall, wait-and-see sentiment was strong in the market. Meanwhile, some steel billet export mills had maintenance plans and were cautious in taking orders to ensure supply for the Chinese market.

11 hours ago

[SMM Sheets & Plates Daily Review] Futures First Declined Then Rebounded, Short-term Trend Unchanged

Today, the most-traded hot-rolled coil (HRC) contract first declined then rebounded, closing at 3,428 at the end of the session, down 0.03% intraday. HRC spot prices mostly fell 10-20 yuan/mt today, with some markets remaining stable. In terms of supply, the impact from maintenance on hot-rolled production this week was 137,500 mt, down 98,500 mt WoW. Next week, the impact from maintenance on hot-rolled production will be 185,500 mt, up 48,000 mt WoW, with overall pressure being neutral. Demand side, end-users still mainly purchased at low prices, and futures-spot arbitrage continued to ship at low prices. Cost side, after macro front disturbances diminished, short-term cost support weakened somewhat. Looking ahead, the supply-demand imbalance in HRC fundamentals showed some diverg

11 hours ago

MMi Daily Iron Ore Report (May 20)

Iron ore futures saw intense trading today, with the most-traded contract I2609 closing at 800 yuan/mt, up 0.19% from the previous trading session. Port spot prices were basically flat compared to the previous day. Traders showed moderate quoting activity; steel mills restocked on an as-needed basis with few inquiries; overall spot market transactions were limited.

11 hours ago