Core Viewpoint - The issuance of ultra-long-term special government bonds aims to support the construction of major national strategies and key security capabilities, addressing the funding gap for extensive and complex projects [1][2]. Group 1: Funding Allocation and Project Scope - In 2024, China plans to allocate 700 billion yuan in ultra-long-term special government bonds for 1,465 "two major" projects, including urban underground pipeline upgrades exceeding 80,000 kilometers and sewage network renovations along the Yangtze River totaling 13,000 kilometers [1]. - The funding will also support comprehensive land management in arid regions covering nearly 40 million acres, as well as infrastructure projects such as railways, highways, and airports [1]. Group 2: Economic Policy and Leverage - The increase in ultra-long-term special government bonds is a key aspect of implementing a more proactive fiscal policy by 2025, aimed at boosting domestic demand amid economic recovery challenges [2]. - As of the end of 2024, the central and local government leverage ratios are 25.6% and 35.2%, respectively, indicating that the central government has more room for leverage compared to local governments [2]. Group 3: Investment Efficiency and Coordination - There is a need to dynamically optimize the allocation of ultra-long-term special government bonds, focusing on major strategic projects to enhance investment efficiency [3]. - A mechanism for regular evaluation and adjustment of the support scope for ultra-long-term special government bonds will be established to monitor effectiveness and inform future investment decisions [3]. Group 4: Integration of Hard and Soft Investments - The strategy emphasizes the importance of balancing "hard investments" with "soft construction," ensuring that project implementation is complemented by necessary reforms and innovations [4]. - For instance, improving the water pricing mechanism and market construction is essential to enhance the effectiveness of investments in water infrastructure projects [4]. Group 5: Diverse Funding Mechanisms - A multi-level funding mechanism will be developed to integrate central and local funds, as well as public and private investments, to maximize the overall effectiveness of funding [5]. - The strategy includes optimizing the support ratio for ultra-long-term special government bonds, potentially increasing support for significant public welfare projects to encourage local participation [5].