MNI China Press Digest Jan 6: Local Bonds, Hainan, EV Sales

MNI (BEIJING) - Highlights from Chinese press reports on Tuesday:

• Local governments have planned to issue more than CNY2.1 trillion of debt in Q1, with actual issuance expected to exceed that level, the Shanghai Securities News reported, citing local bond issuance plans. Of the total, more than CNY680 billion will be new special bonds to fund local infrastructure investment, while about CNY930 billion will be used to refinance existing debt, said Feng Lin, research director at Golden Credit Rating. Feng added that authorities are expected to front-load fiscal support, with the peak issuance period likely to occur in Q2. She estimated that net local government bond supply in 2026 will reach around CNY7.8 trillion.
• Duty-free shopping in the Hainan Free Trade Port reached CNY712 million during the New Year’s Day holiday after the region became a separate customs territory with zero tariffs on many goods, the People’s Daily reported. This was a year-on-year rise of 128.9%, data by local customs showed. The number of duty-free items sold and shoppers reached 442,000 and 83,500, a rise of 52.4% and 60.6% y/y, the newspaper said. It is also estimated that Hainan's total tourism revenue will increase by 2.62–3.28% after the customs closure, the Daily said.
• China’s new energy passenger vehicle sales are expected to grow around 25% in 2025, Securities Times reported. Based on preliminary data from the China Passenger Car Association (CPCA), the wholesale volume of electric vehicles by manufacturers nationwide is estimated to reach 1.57 million in December, a rise of 4% y/y, while the cumulative figure for the whole year could reach 15.33 million units, rising 25%, the newspaper said.