China has opened applications for an 800 billion yuan ($119 billion) policy-based financing tool aimed at supporting local-government projects and slowing economic growth, Reuters reported.
Local authorities are compiling eligible projects for Beijing’s review. Caitong Securities said the process from application to disbursement could take at least a month, limiting the program’s effect on construction and financing demand this year.
The quasi-fiscal instrument is intended to provide capital for projects already in planning or holding preliminary approvals, rather than create entirely new investment demand. Beijing increased the program from 500 billion yuan in 2025.
Caitong estimates the program could support about 10 trillion yuan in total investment, but said this year’s direct boost may be closer to 2 trillion yuan because of delays and a shortage of bankable projects. Goldman Sachs estimates the program could add 0.5 percentage points to GDP, mainly in late 2026 and early 2027.
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