2026 Special Bonds for Foreign-Invested Infrastructure Projects
Published: March 20, 2026
Executive Summary
China's Ministry of Finance allocated RMB 1.3 trillion in special-purpose bonds for 2026, with a new provision allowing qualified foreign-invested enterprises to bid on infrastructure projects funded by these bonds. This marks the first time foreign companies can access China's local government special bond market as contractors and co-investors.
Key Points
RMB 1.3 trillion in special-purpose bonds allocated for 2026 infrastructure projects
Foreign-invested enterprises now eligible to bid as prime contractors on bond-funded projects
Priority sectors: new energy, digital infrastructure, logistics hubs, water management
Co-investment mechanism: foreign companies can partner with local SOEs on PPP (public-private partnership) basis
Local government quotas: each province allocated specific bond issuance quotas, published transparently
Revenue bonds: projects must demonstrate revenue-generating capacity to qualify for bond funding