China’s New $69 Billion Stimulus Tool Makes First Payout to Wuxi-Yixing Railway Project
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The construction site of the Wuxi-Yixing intercity railway project.
China has launched a 500 billion-yuan ($69 billion) policy-backed financial tool to spur investment and domestic demand, with the first batch of funds already disbursed as Beijing moves to shore up growth.
On Sept. 29, the Jiangsu branch of China Development Bank released 1.8 billion yuan to Wuxi Metro Group, according to a Sept. 30 statement from the local development and reform commission. The payment, part of a 3.2-billion-yuan package approved for the Wuxi-Yixing intercity railway, marked the tool’s first payout.
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- China launched a 500 billion-yuan ($69 billion) policy-backed financial tool to spur domestic investment, with initial disbursements already made.
- Funds from three policy banks will support eight areas, including digital economy, AI, and infrastructure, targeting projects breaking ground by end-2025 or unfinished ones.
- Estimates suggest the tool could add 2.75 trillion yuan in social financing and 1.5–2 trillion yuan in fixed-asset investment, potentially raising infrastructure investment growth by 2% in 2025.
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Who’s Who
- Wuxi Metro Group
- Wuxi Metro Group received the first payout from China's new 500-billion-yuan financial tool, a 1.8 billion yuan disbursement from the Jiangsu branch of China Development Bank. This funding is part of a larger 3.2-billion-yuan package approved for the Wuxi-Yixing intercity railway, marking the initial use of this policy-backed financial instrument.
- Guojin Securities Co. Ltd.
- Guojin Securities Co. Ltd., through one of its reports, estimates that the new 500 billion yuan policy-backed financial tool could generate 2.75 trillion yuan in additional social financing. Furthermore, the report suggests this tool could drive 1.5 trillion to 2 trillion yuan in fixed-asset investment.
- Huatai Securities Co. Ltd.
- Yi Huan, chief macroeconomist at Huatai Securities Co. Ltd., estimates that if the entire 500 billion yuan stimulus is deployed this year, it could boost infrastructure investment growth by around 2% in 2025. However, the ultimate impact relies on local government finances, the extent of matching bank loans, and private-sector interest.
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What Happened When
- April 2025：
- The new financial tool was proposed at a Politburo meeting in China.
- Sept. 29, 2025：
- The Jiangsu branch of China Development Bank disbursed 1.8 billion yuan to Wuxi Metro Group as the first batch of funds from the new tool.
- Sept. 30, 2025：
- A statement from the local development and reform commission confirmed the first payout for the Wuxi-Yixing intercity railway.
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