Core Points - The Ministry of Finance reported that in July 2025, a total of 703.2 billion yuan in new local government bonds were issued, including 86.3 billion yuan in general bonds and 616.9 billion yuan in special bonds [1] - The total issuance of local government bonds in July reached 1,213.5 billion yuan, with 344.9 billion yuan in general bonds and 868.6 billion yuan in special bonds [1] - From January to July 2025, the total issuance of new local government bonds amounted to 3,315.9 billion yuan, with 538.3 billion yuan in general bonds and 2,777.6 billion yuan in special bonds [2] Debt Repayment and Interest Payments - In the first seven months of 2025, local government bonds had a principal repayment of 1,478 billion yuan, with 1,282.5 billion yuan from refinancing bonds and 195.5 billion yuan from fiscal funds [3] - The interest payments for local government bonds in the first seven months totaled 831.4 billion yuan, with 118.3 billion yuan paid in July alone [3] Debt Limits and Balances - The national local government debt limit for 2025 is set at 57,987.43 billion yuan, with general debt limited to 18,068.92 billion yuan and special debt to 39,918.50 billion yuan [3] - As of the end of July 2025, the total local government debt balance was 52,762.7 billion yuan, including 17,248.3 billion yuan in general debt and 35,514.4 billion yuan in special debt [3] - The average remaining maturity of local government bonds is 10.3 years, with an average interest rate of 2.90% [3]

Core Viewpoint - The Chinese Ministry of Finance has increased support for economic provinces through special bonds, allocating debt limits to regions with well-prepared projects and high investment efficiency [1][3]. Group 1: Debt Allocation and Growth - In 2025, Zhejiang Province received a new local government debt limit of 378.8 billion yuan, including 55.9 billion yuan for Ningbo, marking an increase of 69.1 billion yuan or approximately 22.3% compared to 2024 [2][3]. - The new debt limit for Zhejiang accounts for about 7.3% of the national total new local government debt (5.2 trillion yuan), which is higher than the province's GDP share of 6.7% in 2024 [3]. - The new debt limit is primarily composed of special bonds, with 34.63 billion yuan allocated for special projects and 3.25 billion yuan for general debt [2][5]. Group 2: Debt Issuance and Management - As of April, Zhejiang had issued approximately 68.6 billion yuan in new special bonds to support 849 public welfare projects [5]. - The second batch of new debt limits for Zhejiang is 165.8 billion yuan, with 138.4 billion yuan for provincial use and 27.4 billion yuan for Ningbo [5][10]. - The allocation of new debt limits to cities and counties will be based on debt risk, financial capacity, and project funding needs [6]. Group 3: Economic Indicators - As of the first quarter of 2025, Zhejiang's GDP reached 2.23 trillion yuan, with a growth rate of 6.0% [7]. - Fixed asset investment growth was recorded at 2.0%, while total import and export volume was 1.2932 trillion yuan [7]. - The local government's debt balance at the end of 2024 was approximately 2.7281 trillion yuan, remaining within the limit of about 2.9462 trillion yuan [11].