China expands pilot program letting 10 regions approve infrastructure bond projects without central approval, following strong 2025 results.

China is expanding a pilot program allowing 10 provincial-level regions to approve infrastructure projects funded by special-purpose bonds without central approval, following strong results from a yearlong trial. Pilot areas issued 94% of their 2025 bond quotas by third quarter—25 percentage points higher than non-pilot regions—while maintaining strict review standards on fiscal sustainability and project viability. Interest rates have declined, with Hunan’s average dropping to 1.99%, reflecting improved market conditions. The move, aligned with the 15th Five-Year Plan, aims to accelerate investment and economic recovery, with the Finance Ministry planning to advance 2026 debt quota issuance and consider expanding the program.