# Special Sovereign Bonds

China’s 10 Trillion Yuan Gamble: Record Spending Masks a Deepening Fiscal Divorce from Property

China's broad fiscal expenditure hit a record 9.5 trillion yuan in Q1 2026, even as land-related revenues plummeted. The government is aggressively pivoting toward social welfare and high-tech spending, funded by increased central debt, to offset the structural decline of the property sector.