{"id":84529,"date":"2025-10-17T15:09:12","date_gmt":"2025-10-17T15:09:12","guid":{"rendered":"https:\/\/www.newsbeep.com\/nz\/84529\/"},"modified":"2025-10-17T15:09:12","modified_gmt":"2025-10-17T15:09:12","slug":"explainer-china-has-a-new-500-billion-yuan-financial-instrument-how-will-it-be-used","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/nz\/84529\/","title":{"rendered":"Explainer | China has a new 500 billion yuan \u2018financial instrument\u2019. How will it be used?"},"content":{"rendered":"<p datatype=\"p\" data-qa=\"Component-Component\" class=\"e8zc9q40 css-1c6uqr6 ec74h0k1\">China\u2019s top economic planner, the National Development and Reform Commission (NDRC), confirmed last month that Beijing was setting up a new \u201cpolicy-based financial instrument\u201d worth 500 billion yuan (US$70 billion).<\/p>\n<p datatype=\"p\" data-qa=\"Component-Component\" class=\"e8zc9q40 css-1c6uqr6 ec74h0k1\">The special financing tool was first proposed in April \u2013 when trade tensions between China and the United States were rapidly escalating \u2013 to provide an extra injection of funding to accelerate domestic innovation and support the economy.<\/p>\n<p datatype=\"p\" data-qa=\"Component-Component\" class=\"e8zc9q40 css-1c6uqr6 ec74h0k1\">It has the potential to drive trillions of yuan in lending in the coming years, analysts said.<\/p>\n<p datatype=\"p\" data-qa=\"Component-Component\" class=\"e8zc9q40 css-1c6uqr6 ec74h0k1\">In this explainer, the Post explores what the new financing tool is, how it will be used, and why it differs from previous similar instruments used by Beijing.<\/p>\n<p>What is a policy-based financial instrument?<\/p>\n<p datatype=\"p\" data-qa=\"Component-Component\" class=\"e8zc9q40 css-1c6uqr6 ec74h0k1\">A policy-based financial instrument is a special financing mechanism used by the government to support major national projects.<\/p>\n","protected":false},"excerpt":{"rendered":"China\u2019s top economic planner, the National Development and Reform Commission (NDRC), confirmed last month that Beijing was setting&hellip;\n","protected":false},"author":2,"featured_media":84530,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11],"tags":[363,4177,138,11390,17389,36076,219,31281,18200,111,139,69,64522,48696,64523],"class_list":["post-84529","post","type-post","status-publish","format-standard","has-post-thumbnail","category-economy","tag-artificial-intelligence","tag-beijing","tag-business","tag-china-international-capital-corporation-cicc","tag-covid-19-pandemic","tag-digital-economy","tag-economy","tag-low-altitude-economy","tag-national-development-and-reform-commission-ndrc","tag-new-zealand","tag-newzealand","tag-nz","tag-policy-banks","tag-private-firms","tag-technological-innovation"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts\/84529","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/comments?post=84529"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts\/84529\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/media\/84530"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/media?parent=84529"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/categories?post=84529"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/tags?post=84529"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}