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China News -- Li Chao, Spokesperson of China's NDRC, Says New Policy-Based Financial Instruments Total RMB 500 Billion, All for Supplementing Project Capital
Li Chao, Deputy Director of the Policy Research Office and Spokesperson of China’s National Development and Reform Commission (NDRC), stated that the NDRC, together with relevant authorities, has actively advanced work related to new policy-based financial instruments. The total scale of these instruments is RMB 500 billion (approximately SGD 90.4 billion; hereinafter, all amounts are in RMB unless specified otherwise), which will be fully used to supplement the capital of projects.
According to People’s Financial News, Li Chao said on Monday, September 29, that to promote better financial services for the real economy and drive the expansion of effective investment, the NDRC and relevant parties have proactively pushed forward work on the new policy-based financial instruments. With a total scale of RMB 500 billion, the instruments will all be allocated to supplement project capital.
Li Chao noted that the NDRC is working with relevant authorities to promptly channel the funds from the new policy-based financial instruments into specific projects. Going forward, it will urge local governments to accelerate the start of construction for these projects, so as to foster the stable and sound development of the economy.
According to a report by Securities Times on Thursday, September 25, as many regions in China have disclosed that they have entered the project application stage, the new policy-based financial instruments to be launched by the authorities are "ready to be rolled out" (lit. "an arrow on the bowstring").
Comprehensively citing public information from various regions, the report stated that the new instruments will focus on eight key areas, including the digital economy, artificial intelligence, low-altitude economy, consumer-related infrastructure, green and low-carbon transition, agriculture and rural areas, transportation and logistics, as well as municipal services and industrial parks.
Regarding the operation model, Caixin reported that the new instruments will be managed by infrastructure fund companies under China’s three policy-based development banks, with capital injection in the form of equity investment or shareholder loans.
In addition, multiple sources from policy-based banks told Caixin that, unlike the previous two rounds of similar instruments, the new batch requires that approximately RMB 100 billion out of the total RMB 500 billion must be allocated to private enterprises. |
