China launches 2026 ultra-long special treasury bond issuance

China on Friday kicked off the issuance of its 2026 ultra-long special treasury bonds, with the first two tranches comprising 20-year and 30-year fixed-rate bonds with periodic interest payments.

The issuance follows this year's government work report, which proposed raising 1.3 trillion yuan (about 189.3 billion U.S. dollars) through ultra-long special treasury bonds to support projects for implementing major national strategies and building security capacity in key areas, as well as large-scale equipment upgrades and consumer goods trade-in programs.

According to a notice previously released by the Ministry of Finance, the issuance of this year's ultra-long special treasury bonds is expected to be completed by mid-October.

Ultra-long special treasury bonds are government securities with maturities typically of 10 years or longer. They are used as a policy tool to finance long-term, large-scale investments aligned with national priorities, while also helping to stabilize growth by injecting sustained fiscal support into the economy.