China has completed issuing 800 billion yuan through new policy-based financial instruments, with the three policy banks channelling the money to AI, digital economy and infrastructure projects.
China has completed the issuance of 800 billion yuan, about 119 billion US dollars, under its 2026 new policy-based financial instruments as of Wednesday, channelling funds to key projects to expand effective investment, according to the three policy banks. The China Development Bank allocated 365 billion yuan, involving projects with a total investment of 5.5 trillion yuan; the Export-Import Bank of China allocated 120 billion yuan, helping leverage more than 1.7 trillion yuan in investment; and the Agricultural Development Bank of China allocated 315 billion yuan, featuring projects with a total investment of around 4.39 trillion yuan.
The instruments were first launched in 2025 with an allocation of 500 billion yuan, and this year's government work report set the 2026 allocation at 800 billion yuan to attract more private capital. They prioritise the digital economy, artificial intelligence, consumer infrastructure and urban renewal such as transport, energy and underground pipe network upgrades. A large share went to artificial intelligence and the digital economy: the China Development Bank allocated 179.01 billion yuan to projects in those fields plus green and low-carbon development, biomedicine and consumption, and the Export-Import Bank supported more than 220 projects in emerging sectors, with loans to those fields accounting for nearly half its allocation.
Support for private investment was also strengthened. The China Development Bank allocated 127.99 billion yuan to projects involving private investment or private capital, the Export-Import Bank supported more than 210 such projects, accounting for almost 40% of its allocation, and the Agricultural Development Bank supported nearly 400 projects with more than 65 billion yuan. All of the 800 billion yuan was used to supplement project capital, helping ease capital shortages for major projects and improve their financing capacity.
The figures are those reported by the three policy banks via Xinhua, and they describe allocations and the total investment of the projects involved, not money already spent on construction. That distinction matters: the 5.5 trillion, 1.7 trillion and 4.39 trillion yuan figures are project totals that the policy-bank money helps leverage, not additional public spending of that size.
Wen Bin, chief economist at China Minsheng Bank, said the rollout, together with major infrastructure projects and urban renewal initiatives, could stimulate demand for electronic information products, electrical machinery, high-end equipment and certain raw materials. The banks say they will now strengthen post-investment management, provide supportive loans and accelerate the conversion of funds into physical work.
The test of the programme will be how much of the allocated capital turns into completed projects, which the banks' own follow-up reporting should show in the coming months.