$119 Billion Stimulus Program Launched to Boost China's Infrastructure Investment

China has launched a massive stimulus program to boost investment in infrastructure and strategic industries. The policy-backed financing tool, worth $119 billion, aims to inject equity-like capital into projects that qualify under China's priority investment categories.

The applications for the 800 billion yuan program went live on August 24, marking the operational start of a key stimulus initiative. However, analysts at Caitong Securities estimate that actually getting the money out the door could take an additional month beyond the application launch.

Beijing hopes to create a multiplier effect where initial policy capital attracts follow-on lending from commercial banks and private investors. To encourage participation, the central government has introduced a 1.5 percentage-point interest subsidy for small and medium enterprises, capped at 50 million yuan per enterprise.

The program represents a significant step up from last year's version, which operated at a smaller scale of 500 billion yuan. The broader strategy traces back to a framework outlined in March 2026, which identified the investment slowdown as a core economic risk and laid out targeted financial instruments to address it.