New Policy-Based Financial Instruments Totaling 500 Billion Yuan Will Be Introduced To Drive The Expansion Of Effective Investment

Li Chao, Deputy Director of the Policy Research Office and Spokesperson of the National Development and Reform Commission (NDRC), stated at the September 29 NDRC press conference that to implement the decisions and arrangements of the Party Central Committee and the State Council, promote better financial services for the real economy, and drive the expansion of effective investment, the NDRC has actively advanced the development of new policy-oriented financial instruments in collaboration with relevant parties. The total scale of these new policy-oriented financial instruments is 500 billion yuan, all of which will be used to supplement project capital.
Regarding the macroeconomic situation, Li Chao stated that the current economic operation still faces numerous risks and challenges. The National Development and Reform Commission will continue to exert efforts, timely intensify the implementation of macroeconomic policies, conduct thorough policy research and reserves, and promptly introduce measures based on changing circumstances.
Enhance project financing capabilities
Regarding the new policy-based financial instruments, Li Chao stated, "We are working with relevant parties to expedite the allocation of funds from these instruments to specific projects. Subsequently, we will urge local governments to accelerate project commencement and construction, promptly generate more physical output, expand effective investment, and promote stable and healthy economic development."
"All new policy-based financial instruments will be used to supplement project capital, which helps address the bottleneck of insufficient capital for major projects, enhances project financing capabilities, and leverages bank loans and social capital to create a multiplier effect," said Ming Ming, Chief Economist at CITIC Securities. Referring to the experience of policy-based and development financial instruments deployed in 2022, policy funds effectively accelerated the growth of infrastructure investment. This round of instruments is expected to play a key role in critical areas such as infrastructure construction and technological innovation, not only expanding effective investment and stabilizing demand in the short term but also strengthening long-term development momentum.
Recently, various regions have held briefing seminars, policy training sessions, or project coordination meetings on new policy-based financial instruments, emphasizing the need to accelerate project reserve efforts. For instance, Jingzhou proposed systematically planning and reserving eligible projects aligned with policy orientations to ensure that upon policy announcement, a batch of mature projects can be quickly developed, ready for submission, implementation, and rapid execution.
Conduct thorough policy research and preparation
Regarding the economic performance, Li Chao noted that from a macro perspective, despite external pressures, sustained efforts in macroeconomic policies and other factors have contributed to overall stable economic operations in China, with high-quality development advancing steadily. From the supply side, production has grown steadily, with strong performance in key sectors of manufacturing and services. From the demand side, the effectiveness of policies continues to materialize, demonstrating robust resilience and pressure resistance.

"Current economic operations still face numerous risks and challenges, with the external environment remaining complex and severe. The foundation for economic recovery and improvement still needs further consolidation," Li Chao stated. In the next steps, the National Development and Reform Commission will thoroughly implement the decisions and plans of the Party Central Committee and the State Council, continue to exert efforts, and timely intensify macroeconomic policies. Simultaneously, it will strengthen economic monitoring, forecasting, and early warning, conduct thorough policy research and preparation, and promptly introduce measures based on changing circumstances.
"With the full effect of various policies being unleashed, we are confident in maintaining steady and healthy economic development and in achieving the annual targets and tasks," said Li Chao.