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Investing.com -- China is planning to allocate 500 billion yuan ($70 billion) of capital to expedite new infrastructure projects, Bloomberg reported on Friday, in a move aimed to safeguard the economy from US tariffs.
Under the newly introduced financing policy tool, the country’s three policy banks will reportedly generate funds and acquire shares in projects. The policy lenders might issue bonds or utilize other means to access financing. The initial capital input of 500 billion yuan could potentially multiply total investments, as it enables the projects to garner extra bank loans or other forms of financing.
The top planning agency in China hinted at this new strategy last month, but the amount and other details remained undisclosed. The capital will be directed towards key projects in sectors such as artificial intelligence (AI), the digital economy, and consumption-related infrastructure, the source stated. The People’s Bank of China might offer liquidity support as required during the process.