China channels $70.56 bn through new policy-based financial instrument

The China Development Bank, the Export-Import Bank of China and the Agricultural Development Bank of China allocated 250 billion yuan, 100 billion yuan and 150 billion yuan respectively to support construction of projects in key areas and weak links.

China has allocated $70.56 billion through a new policy-based financial instrument.
The China Development Bank, the Export-Import Bank of China and the Agricultural Development Bank of China were the three allocators.
The aim is to back construction of projects and weak links.
A fund was also set up for China’s centrally-administered state-owned enterprises to develop strategic emerging industries.

The move is expected to stimulate over 7 trillion yuan in investment, according to statistics from the policy banks.

The financial instrument prioritises projects in technological innovation, consumption expansion and foreign trade stabilisation, while also supporting initiatives in major economic provinces and private investment projects, according to a state-controlled news agency.

The country also established a fund for its centrally-administered state-owned enterprises (SOEs) to develop strategic emerging industries, raising 51 billion yuan (~$7.2 billion) in its first phase.

The fund was initiated by the State-owned Assets Supervision and Administration Commission (SASAC) of the State Council and is managed by China Reform Holdings Corporation Ltd.

Over 10 centrally-administered SOEs have contributed to the fund, including China Mobile, Sinopec and the China National Offshore Oil Corporation.

The fund will invest in fields like new-generation information technology, artificial intelligence, new energy, new materials, high-end equipment, biomedicine and quantum technology.

Fibre2Fashion News Desk (DS)