China injects $28.16b early boost to ’24 investment plans

China is ramping up its economic stimulus by allocating over 200 billion yuan ($28.16 billion) early this year, which is more than 30 per cent of the total budgeted investment for 2024, Xinhua reported on Wednesday.

Liu Sushe, deputy head of the National Development and Reform Commission (NDRC), stated that the NDRC will accelerate fund allocation and enhance project oversight to boost economic growth through strategic investments.

This early release complements the previously announced plan to allocate a total of 700 billion yuan for investment in 2024, as outlined in the government’s work report.

Beyond central budget funds, China also plans to leverage another key economic instrument: special-purpose bonds.

The government intends to issue 3.9 trillion-yuan worth of these bonds to support local government projects, representing a 100 billion yuan increase from the previous year.

The NDRC has already completed the initial selection process for projects eligible for funding through local government special-purpose bonds.

Liu highlighted that this batch of projects demonstrates significant capital needs, paving the way for a successful issuance and utilisation of these bonds.