China Turns on State-Run Banks for $120bn to Boost Economy

Beijing has turned back to state-owned policy banks so as to save an economy under strain, ordering them to provide 800 billion yuan ($120 billion) in funding for infrastructure projects.

This was disclosed at a State Council meeting chaired by Premier Li Keqiang.

The development is targeted at an effort to finance a significant chunk of infrastructure costs in 2022 and give some reliefs to local governments grappling with plunging revenues.

In an address, the chief economist for Greater China and North Asia at Standard Chartered Plc Ding Shuang, said “We think the three key ingredients for investment, projects, financing and incentive are all falling into place this year. The additional 800 billion yuan loans from policy banks will help fill the financing gap if any.”