Core Viewpoint - The State Council's recent meeting emphasizes the importance of advancing the "Two Major" construction within the context of the 14th Five-Year Plan, aiming to enhance effective investment and promote economic growth [2][6]. Group 1: Investment and Economic Growth - The "Two Major" construction focuses on national strategic implementation and key area safety capability building, targeting sectors such as technological self-reliance, urban-rural integration, and ecological safety [3][4]. - In 2024, China plans to issue 700 billion yuan in special long-term bonds to support 1,465 major projects, with total investment expected to exceed 1.2 trillion yuan [3]. - For 2023, 800 billion yuan has been allocated to support 1,459 projects, including significant infrastructure and ecological restoration initiatives [3][4]. Group 2: Infrastructure Development - High-standard farmland construction is a key area, with over 1 billion mu (approximately 66.7 million hectares) completed nationwide [4]. - In 2024, over 400 billion yuan has been allocated to support the construction and renovation of 1.8 million mu (approximately 120,000 hectares) of high-standard farmland [4]. Group 3: Investment Trends - From January to October 2023, infrastructure investment in key areas has seen significant growth, with internet and related services up by 20% and water transportation by 9.4% [5]. - Private investment in infrastructure has increased by 4.5%, accounting for 22.6% of total infrastructure investment, marking a 1% increase from the previous year [5]. Group 4: Strategic Implementation - The meeting highlighted the need for a coordinated approach to project planning and execution, emphasizing the integration of "hard investment" and "soft construction" to address systemic challenges [6][7]. - A robust project coordination mechanism is essential for ensuring quality and safety in engineering, alongside effective asset management and funding allocation [6].

Core Viewpoint - The issuance of ultra-long-term special government bonds aims to support major national strategies and enhance security capabilities in key areas, contributing to both current investment and long-term high-quality development [1][3]. Issuance Plan - The ultra-long-term special government bonds will be issued from May 17 to mid-November, with 7 bonds for 20-year, 12 for 30-year, and 3 for 50-year maturities [2]. - This issuance cycle is longer than previous special bonds, which typically had shorter maturities, with the longest being 30 years [2]. - The issuance will likely follow a pattern of smaller, more frequent offerings to avoid market pressure from concentrated issuance [2][4]. Funding Purpose - The proceeds from the ultra-long-term special bonds will be specifically allocated to support major national strategies and enhance security capabilities in critical areas such as technological innovation, urban-rural integration, and food and energy security [3]. - This approach marks a shift from previous bond issuances that focused on bank capital replenishment or pandemic response [3]. Government Bond Strategy - The timely launch of ultra-long-term special bonds coincides with an acceleration in the issuance and utilization of special bonds, which is expected to secure funding for major projects [4]. - The government aims to enhance the coordination of various funding sources to improve overall efficiency in project financing [5]. Market Impact - The increase in government bond supply is anticipated to affect market liquidity, with expectations of accelerated issuance in the second quarter and a potential peak in the third quarter [5]. - The central bank may consider adjusting monetary policy tools to maintain stable market interest rates in response to the fiscal bond issuance [5].