The China Development Bank (CDB) announced on Thursday that it will increase the number of infrastructure loans it provides to local governments while prioritizing the needs of major economic provinces.
It comes after China’s cabinet was quoted as saying in August it would take further steps to support the world’s second-largest economy, including increasing financial support for infrastructure projects.
The lender has spent 360 billion yuan ($50.76 billion) to fund more than 800 infrastructure projects, the CDB said in a statement, without giving a timeframe.
“The fund will prioritize supporting infrastructure projects in key areas that can start construction as soon as possible in the third quarter,” said the CDB, the country’s largest political lender by assets.
As part of the 360 billion yuan, the CDB had spent 2 billion yuan on a railway connecting Guangzhou Baiyun International Airport to a village in the southern city of Guangzhou and 1 billion yuan on a water project in the southern region of Guangxi.
As part of that sum, it also offered 150 billion yuan to fund 421 projects after last month’s cabinet meeting.
At the August meeting, the cabinet said China would unveil 19 new measures to support the economy, including increasing the quota for political financing instruments by 300 billion yuan, state media reported at the time.