Five provinces issue approximately 78.2 billion yuan in special bonds for land reserves, and local special bonds may see an increase in the second quarter.

In April, local governments across the country issued approximately 3.54 trillion yuan in government bonds. Among them, 693.3 billion yuan was issued in April, a decrease from the issuance scale in February and March. The decrease in local government bond issuance in April may be related to the injection of capital into commercial banks for special national bonds and the launch of issuance of ultra-long-term special national bonds in April. In April, there were new developments in the special land reserve bonds that attracted attention from the outside world, with Hunan and Xiamen joining the issuance ranks, including those for recycling existing land and for new land reserve projects. Facing external uncertainties, China's second quarter policies to expand domestic demand will be further strengthened, with local special bonds and ultra-long-term special national bonds accelerating issuance. On May 7th, the central bank announced a reserve requirement ratio cut and interest rate reduction. It is widely believed that one of the reasons for the central bank's reserve requirement ratio cut and interest rate reduction in May is the expectation that government bond supply will further increase in the second quarter and needs to cooperate with fiscal policy.