China's nine-month fiscal revenue rises 5.1% as land sales keep falling

what happened

China's finance ministry said on Friday that fiscal revenue in the first nine months of 2026 rose 5.1% from a year earlier, after a 5.7% gain in January to August, according to Reuters. Total revenue reached 17.2 trillion yuan, or about $2.58 trillion. Tax income climbed 6.1%, while non-tax revenue grew 1.2%. Government spending increased 1.0%, slower than the 1.2% rise over the first eight months.

Authorities are speeding up local special bond sales. Net issuance over the nine months hit 3.56 trillion yuan, equal to 81% of the annual quota. Finance ministry official Zhao Zeyong said part of the 2027 quota will be front-loaded. September issuance stood at 633.5 billion yuan, 214.8 billion yuan more than a year earlier.

Revenue from government land sales fell 27.9% over the period, a smaller drop than the 28.6% decline recorded through August.

why it matters

Land sales have long been a key funding source for local governments, so their decline, tied to the property downturn that began in mid-2021, remains a major constraint on public finances. Faster special bond issuance could support infrastructure spending, while the yuan and Chinese equities will depend on how quickly domestic demand recovers.

market impact

Yuan and China equities: weak land revenue limits fiscal support for the economy

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