China Merchants Securities: Liuzhangwang Project Approval Speeds Up Water Network Special Debt Investment Scale

The Zhitong Finance App learned that China Merchants Securities released a research report saying that judging from current data, the pace of progress of Liuzhang.com has clearly accelerated after the July Politburo meeting, and the project side generally reached a phased high point during the year in July or August. Looking at each network, water grids are still the largest direction of special debt support, and there has been a further increase over the same period last year; the year-on-year increase in investment in power grids and computing power grids is even more obvious, indicating that financial support is being skewed towards new infrastructure at an accelerated pace. The overall investment in logistics network and underground pipeline network special bonds was basically the same as in the same period last year, but project approval has already rebounded; although communication networks lack comparable special debt statistics, the number of projects approved increased markedly in July.

On the financial side, as of January-August, special debt support for most areas of Liuzhang.com was higher than in the same period last year. The amount invested in water networks increased from about 180 billion yuan in the same period in 2025 to more than 200 billion yuan. It is the area with the largest amount of special debt investment in the Liuzhang Network. Looking at the project side, after the Politburo meeting in July, the pace of approval of projects related to the six networks accelerated to varying degrees. Underground pipelines, computing power networks, logistics networks, water grids, power grids, and communication networks all showed phased highs in the number of projects or total project investment during the year in July or August. This shows that the promotion of the Liuzhangwang policy has gradually moved from early deployment to the accelerated stage of project reserves and approval. In the future, it is possible to continue to track whether project approval can be further transformed into special bond issuance, construction commencement, and physical workload.

In terms of underground pipelines, the pace of project approval clearly picked up in August, and the overall scale of investment in special bonds was basically the same as in the same period last year.

The approval of logistics network-related projects was accelerated again in July. The number of projects and investment amounts were relatively high during the year, and the overall investment scale of special bonds was basically the same as in the same period last year.

The water network is still the area with the strongest financial support among the six networks, and the amount has increased compared to last year. The approval of water network projects was accelerated in July and August. The total investment amount for project approval in July increased compared to previous months, and the number of projects approved in August also rebounded.

Investment in special grid bonds increased significantly over the same period last year. In August, the pace of approval of grid-related projects accelerated, and the number of projects and the scale of investment increased markedly.

In terms of communication networks, the number of communication network-related project approvals increased markedly in July, reaching a high level during the year in stages, indicating that communication infrastructure project reserves are being released at an accelerated pace.