China will set up a state infrastructure investment fund worth 500 billion yuan ($74.69 billion) to spur infrastructure spending and revive a flagging economy, two people with knowledge of the matter told Reuters on Tuesday.
China's economy has started a slow recovery from the supply shocks caused by extensive lockdowns since the second quarter, although headwinds to growth persist, including from a still subdued property market, soft consumer spending and fear of any recurring waves of infections.
Authorities are doubling down on an infrastructure push, dusting off an old playbook to revive the economy hit by Covid, with the State Council pledging an additional 800 billion yuan in lending quota for policy banks to support big projects.
Sources told Reuters that China will issue 2023 advance quota for local government special bonds in the fourth quarter, with the new quota likely bigger than 1.46 trillion yuan for 2022.
The Ministry of Finance and the National Development and Reform Commission did not immediately respond to Reuters' requests for comment. ($1 = 6.6939 Chinese yuan renminbi)