China officially opened the application window for its 800 billion yuan (approximately $119 billion) policy-backed financing tool on August 24, marking the most ambitious quasi-fiscal stimulus measure in years. The mechanism is designed to inject equity-like capital into infrastructure and high-tech manufacturing projects, with potential leverage supporting up to 10 trillion yuan in total project investment, implying a leverage ratio of approximately 13:1. Caitong Securities anticipates disbursement delays of at least one month, with only about 2 trillion yuan in economic impact expected during 2026. Goldman Sachs projects a GDP contribution of 0.5 percentage points, concentrated in late 2026 and early 2027. Complementary measures include a 1.5 percentage point interest subsidy for SMEs capped at 50 million yuan per company and a 500 billion yuan private-investment guarantee facility.
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