China adds US$146bil more of stimulus to rescue economy

Amid an energy crunch triggered by drought, support was also directed toward state-owned power generation companies, which will be allowed to sell 200 billion yuan of bonds. - Reuters

BEIJING (Bloomberg): China stepped up its economic stimulus with a further 1 trillion yuan (US$146 billion) of funding largely focused on infrastructure spending, support that likely won’t go far enough to counter the damage from repeated Covid lockdowns and a property market slump.

The State Council, China’s Cabinet, outlined a 19-point policy package on Wednesday, including another 300 billion yuan that state policy banks can invest in infrastructure projects, on top of 300 billion yuan already announced at the end of June. Local governments will be allocated a 500 billion yuan of special bonds from previously unused quota.