China Returns to Global Debt Markets with USD 4B Bond Offering

China’s fiscal revenue climbed by 0.8% in the first eleven months of 2025 from a year earlier, the same pace as in the January–October period, according to data from the Ministry of Finance released on Wednesday. During the period, fiscal revenue increased to CNY 20.05 trillion. The central government collected about CNY 8.85 trillion, down 1% yoy, while local governments collected CNY 11.21 trillion, up 2.2%. Tax revenue rose 1.8% yoy to CNY 16.48 trillion, while non-tax revenue fell 3.7% to CNY 3.57 trillion. Meanwhile, fiscal expenditure expanded 1.4% to CNY 24.85 trillion, slowing from a 2% growth in the first ten months. Central government spending rose 6.2%, while local government expenditure grew by 0.6% during the same period. Spending on education totaled approximately CNY 3.79 trillion, up 4.4%. Expenditure on science and technology reached CNY 889.2 billion, marking a 7.9% increase, while spending on social security and employment rose 8.1% to CNY 4.07 trillion.

China’s fiscal revenue increased by 0.8% in the first ten months of 2025 compared to a year earlier, following a 0.5% rise in the January–September period, according to data from the Ministry of Finance released on Monday. During the period, fiscal revenue climbed to nearly CNY 18.65 trillion (USD 2.63 trillion). The central government collected about CNY 8.19 trillion, down 0.8% yoy, while local governments collected CNY 10.46 trillion, up 2.1%. Tax revenue rose 1.7% yoy to CNY 15.34 trillion, while non-tax revenue dropped 3.1% to CNY 3.31 trillion. Meanwhile, fiscal expenditure expanded 2% to CNY 22.58 trillion. Central government spending advanced 6.3%, while local government expenditure grew by 1.2% during the same period. Spending on education totaled approximately CNY 3.41 trillion, up 4.7%. Expenditure on science and technology reached CNY 784.7 billion, marking a 5.7% increase, while spending on social security and employment rose 9.3% to CNY 3.77 trillion.

China is planning to raise up to USD $4 billion through a two-tranche dollar bond offering, just a week after its trade war truce with Washington, according to a term sheet seen by Reuters. The deal includes a three-year bond priced at U.S. Treasuries plus ~25 basis points and a five-year bond at Treasuries plus ~30 basis points. Despite the USD 4 billion cap, demand has surged, with the order book exceeding USD 65 billion, a bookrunner’s message revealed. This marks China’s largest dollar-denominated issuance in four years. Last year, China raised USD 2 billion via dollar bonds issued in Saudi Arabia—its first such issuance in the region.