ECONOMY

China to Expand Policy-Backed Financing Tool to Boost Investment

Published: Mar. 6, 2026 5:17 p.m. GMT+8

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China will expand a policy-backed financing instrument to 800 billion yuan ($116 billion) this year, part of broader efforts to support investment and economic growth.

Premier Li Qiang outlined the plan in the government work report delivered Thursday at the opening of the country’s annual legislative session. The issuance marks a 300 billion yuan increase from the previous year.

The policy-backed financing instrument is a government-supported funding mechanism designed to channel capital into major investment projects.

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China will expand its policy-backed financing instrument to 800 billion yuan ($116 billion) in 2024, a 300 billion yuan increase from last year.
The government will allocate 755 billion yuan in central budget funds and issue 800 billion yuan in ultra-long special treasury bonds for major development projects.
These measures aim to boost investment after a 3.8% drop in fixed-asset investment last year, with additional support for private and local government investment.

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