# Ministry of Finance
Latest news and articles about Ministry of Finance
Total: 9 articles found
China Keeps the Fiscal Foot on the Gas for 2026: More Bonds, Bigger Transfers and a Push for Consumption and Tech
The Chinese Ministry of Finance has vowed to continue an active, expansionary fiscal stance in 2026, combining large bond‑funded investment, targeted consumption support and increased transfers with stronger debt governance and fiscal reforms. The policy mix aims to stabilise growth while prioritising technology, green transition and social spending, though implementation and local debt management remain the principal risks.
China Advances Local Bond Quotas: Guangdong Leads as Provinces Ready 2.4 Trillion Yuan for Early Issuance
Nineteen Chinese provinces have revealed advance allocations of next year’s local government borrowing limits totalling about 2.4 trillion yuan, with Guangdong receiving the largest share. The advance quotas — dominated by special-purpose bonds and often re-lent by provinces to cities and counties — are meant to speed infrastructure financing and stabilise investment, but they raise questions about transparency and contingent debt risks.
China’s Provinces Reveal Scale of New Childcare Subsidies as Beijing Eyes Wider Rollout
Fourteen Chinese provinces reported roughly ¥45.9 billion in 2025 allocations for a new childcare subsidy that pays ¥3,600 per child annually for children under three. Beijing says about ¥100 billion will be spent nationally in 2025 and that more than 30 million infants have received payments; however, regional disparities and implementation challenges leave the policy’s demographic impact uncertain.
China’s Local Governments Rapidly Tap Bond Markets to Fund Projects and Refinance Hidden Debt
Chinese local governments have issued more than RMB 2 trillion in bonds by late February as Beijing leans on fiscal tools to spur infrastructure and social projects and to replace implicit local liabilities. About half of the issuance is refinancing aimed at swapping hidden debt into formal bonds, while new special‑purpose bonds are being prioritised for on‑the‑ground investment.
China Tightens VAT Rules: New Guidance Clarifies Input Deductions, Long‑term Assets and Prepayment Obligations
China has issued three implementing measures to clarify how businesses deduct input VAT, treat high‑value long‑term assets and manage VAT prepayments, along with transitional filing changes. The rules reduce legal ambiguity but require firms to adjust accounting systems and cash‑flow planning, with construction, real estate and oil & gas particularly affected.
China’s Treasury Benefits from Market Turnover as Stamp Tax Surges 57.8% in 2025
China’s Treasury recorded a 57.8% jump in securities transaction stamp tax to 2,035 billion yuan in 2025, reflecting stronger market turnover, while overall general public budget revenue fell 1.7% to 21.6 trillion yuan. Tax receipts rose only modestly and non‑tax income declined due to a 2024 one‑off, even as childcare subsidies have reached more than 30 million infants and remaining payments are to be completed by March 2026.
China’s State Firms See Profits Slip in 2025 Despite Flat Revenues, Raising Questions for Beijing’s Growth and Reform Strategy
China’s state-controlled firms posted a 6.3% drop in profits for 2025 despite a 0.5% rise in revenue, with total profits around ¥4.04 trillion and an asset‑liability ratio of 65.1%. The data highlight margin pressure across SOEs and present Beijing with a choice between fiscal support and deeper restructuring.
Beijing Offers Interest Subsidies to Spur SME Investment in Strategic Supply Chains
China’s Ministry of Finance will subsidise 1.5 percentage points of interest on qualifying fixed-asset loans to private small and micro enterprises in targeted industrial chains, effective from January 1, 2026. The one-year pilot caps subsidy per loan at RMB 50 million and channels support through a designated set of banks with central–provincial coordination and auditing mechanisms.
Beijing Extends Consumer‑Loan Interest Subsidies Through 2026 to Bolster Domestic Demand
China’s Ministry of Finance has extended a fiscal interest‑subsidy for personal consumer loans through 31 December 2026, with an implementation window from 1 September 2025. The policy aims to lower borrowing costs and stimulate household spending, while authorities will reassess its continuation after evaluating outcomes.