# Refinancing Bonds

The Refinancing Treadmill: China’s Local Debt Hits Record Highs as Growth Engines Stall

China's local government debt issuance hit a record 5.87 trillion RMB in H1 2026, but the growth was driven by a 19% rise in refinancing rather than new investment. This shift highlights a growing focus on debt sustainability as infrastructure investment growth slows sharply to near-zero levels.