Caixin Explains: How China Plans to Pay for Its Urban Renewal Push

China is backing its first national-level urban renewal blueprint with major capital support, allocating a combined 257 billion yuan ($37.8 billion) in central budget funds and special sovereign bonds in 2026 to upgrade aging housing and infrastructure.

Officials from four central government ministries on Monday outlined the funding channels and policy priorities for the urban renewal plan, which covers the 15th Five-Year Plan period from 2026 to 2030. Unveiled in late May, the blueprint calls for overhauling dilapidated neighborhoods, modernizing critical underground utility networks and revitalizing idle municipal assets.