China is exploring setting up a 500 billion yuan ($74.69 billion) infrastructure investment fund to revive the economy, two sources have revealed.
The Chinese economy has started a slow recovery from supply shocks caused by stringent Covid curbs since the second quarter, although headwinds to growth persist, including from a still subdued property market, soft consumer spending and fear of recurring waves of infections.
Authorities are doubling down on an infrastructure push, dusting off an old playbook to revive the economy hit by Covid, with the State Council pledging an additional 800 billion yuan in lending for policy banks to support big projects.
China may issue an advance quota for 2023 in local government special bonds in the fourth quarter, with the new quota likely bigger than 1.46 trillion yuan for 2022.
- Reuters with additional editing by Jim Pollard