The addition of local government special bonds and replacement bonds will simultaneously “open” on January 5, 2026. On the same day, the Shandong provincial government plans to tender and issue the first batch of 2026 local government bonds, including 24.609 billion yuan of 2026 Shandong local government refinancing special bonds to “replace hidden existing debts.” In the new year, all replacement bonds with a total amount of 6 trillion yuan will be issued. According to the interviewed experts, the completion of the issuance of replacement bonds means that large-scale hidden debt replacement work has come to a phased end, but it is not true that efforts to convert local debt will decline in the future. With the obvious results of a package of debt conversion measures, in 2026, local debt conversion work may focus more on building long-term mechanisms and resolving the operating debts of local government financing platforms, putting higher demands on the market-based transformation of local government investment and financing platform companies. The newly established Department of Debt Management of the Ministry of Finance may help improve a full-caliber debt risk prevention and control system.

The addition of local government special bonds and replacement bonds will simultaneously “open” on January 5, 2026. On the same day, the Shandong provincial government plans to tender and issue the first batch of 2026 local government bonds, including 24.609 billion yuan of 2026 Shandong local government refinancing special bonds to “replace hidden existing debts.” In the new year, all replacement bonds with a total amount of 6 trillion yuan will be issued. According to the interviewed experts, the completion of the issuance of replacement bonds means that large-scale hidden debt replacement work has come to a phased end, but it is not true that efforts to convert local debt will decline in the future. With the obvious results of a package of debt conversion measures, in 2026, local debt conversion work may focus more on building long-term mechanisms and resolving the operating debts of local government financing platforms, putting higher demands on the market-based transformation of local government investment and financing platform companies. The newly established Department of Debt Management of the Ministry of Finance may help improve a full-caliber debt risk prevention and control system.