Key facts
- China Development Bank disbursed 460 million yuan ($68.47 million) from the first tranche of the 2026 policy financing tool.
- The funds are intended to support major construction projects with private investor backing.
China Development Bank has disbursed 460 million yuan ($68.47 million) from the first tranche of China's 2026 policy-based financing tool. The funds aim to bolster investment in major construction projects, particularly in battery manufacturing, high-end nickel-chromium materials, and transport infrastructure.
The disbursement of these funds signals Beijing's commitment to using policy financing to stimulate investment and support key industries, aiming to counteract a slowdown in economic growth and a decline in investment.
China has begun disbursing funds from its 2026 policy-based financing tool, with China Development Bank releasing 460 million yuan ($68.47 million) in the first tranche. This initiative is part of Beijing's broader effort to stimulate investment and economic growth, particularly in strategic sectors and infrastructure projects involving private investors.
The initial funding targets projects in battery manufacturing, high-end nickel-chromium materials, and transport infrastructure. The program, announced in March, has a total size of 800 billion yuan, an increase from 500 billion yuan in 2025, and is designed to leverage private and bank financing.
This move comes as China's economic growth slowed to 4.3% in the second quarter, marking the weakest pace in over three years and falling short of market expectations, partly due to a decline in investment.