China Leans on Policy Banks to Deliver $120 Billion Stimulus
- Funding could help finance a chunk of infrastructure costs
- Policy banks have historically been called upon for support
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Beijing is turning to state-owned policy banks once again to help rescue an economy under strain, ordering them to provide 800 billion yuan ($120 billion) in funding for infrastructure projects.
The stimulus, announced at a State Council meeting chaired by Premier Li Keqiang, could help finance a significant chunk of infrastructure costs this year and give some relief to local governments grappling with plunging revenues.