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China opens applications for $119 billion policy financing tool
The 800 billion yuan program could support infrastructure and strategic projects, but rollout delays may limit its impact this year.
China has opened applications for an 800 billion yuan ($119 billion) policy-based financing tool for local government projects, as Beijing seeks to support slowing economic growth.
Implementation guidelines have been circulated to local authorities, which are compiling eligible projects for review in Beijing. The process from application to fund disbursement is expected to take at least a month, Caitong Securities said, potentially limiting the tool’s support for financing demand and construction activity this year.
The quasi-fiscal program was announced in March to provide project capital and attract private and bank financing for infrastructure and strategic sectors. Beijing increased its size from 500 billion yuan in 2025.
China’s gross domestic product growth slowed to 4.3% in the second quarter from 5.0% in the first quarter. Caitong estimated the program could support about 10 trillion yuan in total investment, while Goldman Sachs analysts estimated a 0.5-percentage-point GDP impact concentrated in late 2026 and early 2027.