Central Bank Report: A total of 740 billion yuan has been invested in two batches of financial instruments to help stabilize the macroeconomic market
According to the “China Monetary Policy Implementation Report for the Third Quarter of 2022” released by the People’s Bank of China a few days ago, as of the end of October, the two batches of financial instruments have invested a total of 740 billion yuan, which has effectively supplemented a batch of transportation, energy, water conservancy, municipal and industrial upgrades. Capital funds for major projects in areas such as infrastructure. With the joint efforts of all parties, policy development financial instruments effectively support infrastructure construction and help stabilize the macroeconomic market.
In order to solve problems such as difficulty in obtaining capital funds for major projects, in June this year, the People’s Bank of China supported the China Development Bank and the Agricultural Development Bank of China to set up financial instruments totaling 300 billion yuan to supplement the capital funds of major projects including new infrastructure. Or bridge the capital of special debt projects. In August, on the basis of the first batch of 300 billion yuan of financial instruments having already been allocated to the project, an additional amount of more than 300 billion yuan was added, and the Export-Import Bank of China was added as a financial tool to support banks.
The report shows that while policy-based development financial instruments are focusing on solving the capital gap of major projects, supporting financing is also actively following up. Relevant departments encourage policy and development banks to make good use of the 800 billion yuan credit line newly added this year, and guide commercial banks to simultaneously follow up major project supporting financing through syndicated loans and other methods. At present, the cumulative credit line of banks supporting projects with financial instruments has exceeded 3.5 trillion yuan, effectively meeting the diversified financing needs of project construction.
From the perspective of the implementation effect, in the first 10 months of this year, infrastructure investment increased by 8.7% year-on-year, and the growth rate accelerated for six consecutive months; the total planned investment of newly started projects increased by 23.1% year-on-year, accelerating for two consecutive months. In the future, with the accelerated implementation of projects supported by financial instruments, the comprehensive effect of “expanding investment, creating employment, and promoting consumption” will continue to be released.
According to the report, in the next step, the People’s Bank of China will cooperate with the supervision of project construction and strengthen factor guarantees, accelerate the arrival of other capital funds, promote financial instruments to accelerate the payment and use of funds, support the follow-up of project supporting financing, and promote the accelerated implementation of more effective investment within the year. Consolidate the upward momentum of the economy. (Reporter Xu Peiyu)