Beijing – China’s fiscal revenue rose by 5.1 percent during the first nine months of 2026 compared with the same period last year, according to data released Friday by the Ministry of Finance. The growth followed a 5.7 percent increase recorded from January through August.
Total fiscal revenue reached 17.2 trillion yuan, equivalent to 2.58 trillion dollars, between January and September. Tax revenues grew by 6.1 percent annually, while non-tax revenues increased by 1.2 percent, Reuters reported. In contrast, fiscal expenditure rose by only 1 percent during the nine-month period, slowing down from a 1.2 percent increase observed in the first eight months.
Accelerated Bond Issuance
Zhao Zong, an official at the Ministry of Finance, stated that China has accelerated the issuance of special bonds for local governments this year. The ministry plans to issue part of its 2027 quota earlier than scheduled. Net issuance of these special bonds totaled 3.56 trillion yuan from January to September, representing 81 percent of the annual quota.
Issuances in September alone reached 633.5 billion yuan, an increase of 214.8 billion yuan compared to the same month last year. This rapid deployment aims to bolster local fiscal capacity amid ongoing economic challenges.
Property Sector Drag on Revenues
Land sales revenue, a key funding source for local governments, fell by 27.9 percent year-on-year during the first nine months. This decline is slightly less severe than the 28.6 percent drop recorded in the first eight months. The property crisis, which began in mid-2021, continues to erode this critical revenue stream.
Stock Market Volatility
Chinese stocks rebounded on Friday, supported by increased trading in exchange-traded funds favored by state-backed investors. The Shanghai Composite Index rose 0.9 percent, while the CSI 300 index gained 1.7 percent after intraday declines of up to 1.9 percent. However, the CSI 300 suffered its eleventh consecutive weekly loss, marking the longest losing streak since its launch in 2005.
The index remains approximately 19 percent below its June 22 peak, approaching the technical threshold for a bear market. Shenzhen and ChiNext indices also rose, reflecting mixed sentiment across different market segments.
External Bond Offerings
The Ministry of Finance issued 15.5 billion yuan in offshore yuan-denominated government bonds in Hong Kong, attracting strong demand with oversubscription reaching 3.43 times. Yields hit record lows, with two-year bonds yielding 1.24 percent and ten-year bonds at 1.67 percent. Weak domestic growth and stock performance have boosted demand for Chinese debt instruments globally.
This story was produced in the newsroom from the disclosed sources named above.
