FINANCE

Beijing Fast-Tracks $36 Billion Through Policy Banks to Revive Growth

Published: Oct. 21, 2025 4:46 a.m. GMT+8

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The capital injection is part of Beijing’s latest effort to stabilize the economy by bolstering domestic demand, a priority identified at an April Politburo meeting

China’s top policy banks have funneled nearly 300 billion yuan ($36 billion) into strategic investment projects over the past two weeks, a rapid rollout of a 500-billion-yuan government-backed initiative aimed at reviving economic momentum amid a worsening real estate downturn.

Since late September, China Development Bank (CDB) and the Agricultural Development Bank of China (ADBC) have been disbursing funds through newly established subsidiaries created to manage the program, according to bank announcements released Monday.

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China’s policy banks have disbursed nearly 300 billion yuan of a 500-billion-yuan initiative to boost economic growth amid a property downturn.
Funds target eight sectors including AI, green industry, and infrastructure, aiming to leverage trillions in total investment, with deployment set for completion by year-end.
Analysts emphasize the program’s success depends on local governments’ fiscal health and private sector participation; prior similar efforts attracted 3.5 trillion yuan in follow-on lending.

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Who’s Who

China Development Bank: The China Development Bank (CDB) is a policy bank that has received a 250-billion-yuan funding quota for a government-backed initiative. As of October 17, CDB disbursed 189.4 billion yuan, anticipating 2.8 trillion yuan in total investment. 28.8% of its capital supports projects with private-sector involvement.

Agricultural Development Bank of China: The Agricultural Development Bank of China (ADBC) is one of China's top policy banks involved in a 500-billion-yuan government-backed initiative. ADBC has disbursed 100.1 billion yuan to 562 projects, leveraging over 1.3 trillion yuan in investment, including 9.4 billion yuan for 23 private-sector-led projects. The bank launched its fund management subsidiary on September 29.

Export-Import Bank of China: The Export-Import Bank of China (中国进出口银行) is allocated 100 billion yuan from a 500-billion-yuan government-backed initiative. It launched its fund management subsidiary on September 29 as part of this program to revive economic momentum.

Sinolink Securities Co. Ltd.: Sinolink Securities Co. Ltd. (国金证券) is mentioned in the article as providing estimations related to a government-backed economic initiative. The company estimates that the current round of funding could boost total social financing by 2.8 trillion yuan and generate 1.5 trillion to 2 trillion yuan in fixed-asset investment.

Huatai Securities: Yi Huan, chief macroeconomist at Huatai Securities, projects that a 500-billion-yuan government-backed investment initiative could increase China's infrastructure investment by approximately 2 percentage points in 2025, assuming full implementation. This initiative aims to revive economic momentum.

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What Happened When

April 2025：: The Politburo identified stabilizing the economy by bolstering domestic demand as a priority.

Since late September 2025：: China Development Bank and Agricultural Development Bank of China began disbursing funds for the 500-billion-yuan initiative through newly established subsidiaries.

September 29, 2025：: All three policy banks (China Development Bank, Agricultural Development Bank of China, Export-Import Bank of China) launched their respective fund management subsidiaries.