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China Seen Planning Infrastructure Fund to Boost Economy

China is exploring setting up a 500 billion yuan infrastructure investment fund to revive the economy, as headwinds to growth persist in the property sector, along with fears of further Covid curbs


China construction workers
Construction workers stand on scaffolding in front of high voltage power lines in Shanghai. Photo from Sept 25, 2013 by Aly Song, Reuters.

 

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.

The Ministry of Finance and the National Development and Reform Commission did not immediately respond to requests for comment.

 

  • Reuters with additional editing by Jim Pollard

 

 

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Jim Pollard

Jim Pollard is an Australian journalist based in Thailand since 1999. He worked for News Ltd papers in Sydney, Perth, London and Melbourne before travelling through SE Asia in the late 90s. He was a senior editor at The Nation for 17+ years and has a family in Bangkok.

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