China released 550 billion yuan ($82 billion) in unused government debt quotas on Friday to shore up local government finances and fund infrastructure projects. The move follows weak economic data that has piled pressure on the country's 4.5%-to-5% growth target.
China's finance ministry allocated 550 billion yuan ($82 billion) in unused government debt quotas on Friday, directing the funds toward local government finances and infrastructure investment. The move comes as policymakers battle weak consumption and investment at home.
A run of soft economic readings has piled pressure on China's efforts to hit this year's growth target of 4.5% to 5%. Momentum faltered after the first quarter, as tepid domestic demand and a prolonged property downturn offset a boom in high-tech sectors and goods exports.
The State Council pledged last month to step up counter-cyclical policy support to tackle the rising economic strain and achieve this year's economic and social development targets.
Of Friday's debt quota, 300 billion yuan is earmarked for supporting the daily operations of county-level and district-level governments, the finance ministry said in a statement. The rest will fund infrastructure projects, especially those already under construction, and projects in economically stronger regions.
Policymakers had similarly tapped unused government debt quotas as a year-end fiscal push in the past two years. But this year's figure exceeds those of 2024 and 2025.
In a separate statement, the finance ministry vowed to apply fiscal policy more proactively. According to Reuters: "vigorously and effectively" implement that approach and support the expansion of domestic demand.
Source: Investing.com
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