Beijing funnels $36bn into strategic projects

China’s top policy banks have funneled nearly RMB 300 billion ($36 billion) into strategic investment projects over the past two weeks, a rapid rollout of a 500-billion-yuan government-backed initiative aimed at reviving economic momentum amid a worsening real estate downturn, reports Caixin. Since late September, China Development Bank (CDB) and the Agricultural Development Bank of China (ADBC) have been disbursing funds through newly established subsidiaries created to manage the program, according to bank announcements released Monday.

The urgency follows data showing slowing growth in manufacturing and infrastructure investment during the first three quarters, with property-sector weakness dragging overall fixed-asset investment.

The capital injection is part of Beijing’s latest effort to stabilize the economy by bolstering domestic demand, a priority identified at an April Politburo meeting. The funds will serve as project capital, designed to attract additional financing from commercial banks and private investors. But analysts warn the program’s effectiveness hinges on local governments’ fiscal strength and private capital’s willingness to participate.