China Completes 2026 Ultra-Long Special Treasury Bond Issuance at 1.3 Trillion Yuan

The completion of the ultra-long special treasury program matters less for its headline size than for how the proceeds are split: the bulk goes to state-directed "Two Major" construction, with a comparatively small slice aimed directly at household demand through trade-in subsidies. That composition suggests fiscal support remains investment-led, with consumption kickers as a supplement rather than the core. Whether the trade-in and equipment-upgrade channels generate durable demand, or merely pull forward purchases, is the open question as the program's effects feed into 2027.