The initial capital injection of 500 billion yuan could amplify total investments by multiple times that amount, since it allows the projects to raise additional bank loans or other forms of financing, the person said.
China plans to allocate 500 billion yuan ($89.62 billion) of capital that could be leveraged up to fast track new infrastructure projects as authorities seek to cushion the economy from US tariffs, according to people familiar with the matter.
Under the so-called “new financing policy tool,” the nation’s three policy banks will raise funds and buy stakes in projects, one of the people said, asking not to be identified discussing a private matter. The policy lenders may issue bonds or use other methods to tap financing, according to the person.
