CITIC Securities reports China has relaunched policy-backed financial instruments after a three-year pause, allocating 500 billion yuan ($69 billion) to accelerate infrastructure and tech projects. The funds will support traditional sectors (transport, utilities) and emerging industries (AI, digital economy, low-altitude economy), reflecting a dual-track approach to stabilize growth.
While these instruments traditionally amplify investment through leverage, their impact now depends on parallel corporate loan issuance under tighter debt rules. The 1-2 month implementation lag suggests rapid deployment, with local bond approvals and special sovereign bond projects expected to accelerate in H2 2024.
The move underscores Beijing’s commitment to counter economic headwinds through targeted stimulus. By bridging project funding gaps, the initiative aims to spur near-term activity while maintaining debt discipline—a balancing act critical for sustaining market confidence.
Related topics：
