Exclusive: China Revives Lending Tool to Stimulate Infrastructure Investment

China will chiefly use a relaunched loan program to finance major infrastructure projects, sources familiar with the matter told Caixin, as the government ramps up efforts to provide extra liquidity and shore up an ailing economy.

After an over two-year pause, the People’s Bank of China (PBOC) has tapped its pledged supplemental lending (PSL) tool to inject funds into the country’s three policy banks, handing out a net 108.2 billion yuan ($15 billion) in September, according to a Saturday statement. This marked the first net monthly increase in lending via the tool since February 2020 and the highest amount since February 2018.