China disburses first tranche of 2026 policy financing to boost investment
China's policy bank disburses first 2026 funds to spur investment, targeting battery, nickel-chromium, and transport projects.
China Development Bank (CDB), the country's largest policy bank, has released the first tranche of funds under Beijing's 2026 policy-based financing tool. The disbursement amounts to 460 million yuan (about $68.47 million), according to state media on Thursday.
The funds are intended to replenish capital for major construction projects that involve private investors. The initial tranche covers three projects in battery manufacturing, high-end nickel-chromium materials, and transport infrastructure.
This disbursement is part of a broader 800 billion yuan policy-based financing programme for local government projects, which was announced in March. The scheme is a quasi-fiscal tool designed to provide project capital and attract additional private and bank financing for infrastructure and strategic sectors. Its size was increased from 500 billion yuan in 2025.
China began accepting applications for the programme in August, as reported earlier. Analysts have noted that the relatively late rollout could limit its impact this year.
The move comes as China's economic growth slowed to 4.3% in the second quarter, the weakest pace in more than three years and below market forecasts. The slowdown was partly attributed to a decline in investment. In contrast, the economy grew 5.0% in the first quarter.