Infrastructure Fund for Stimulating the Economy in Central Region Launches in Q3 with a Scale of 97 Trillion Won

[Image source=Reuters Yonhap News]

[Asia Economy Reporter Park Byung-hee] Major foreign media outlets reported on the 5th, citing sources, that the Chinese government plans to establish an infrastructure investment fund worth 500 billion yuan (approximately 97.12 trillion won) to stimulate the economy.

Sources indicated that the fund is expected to launch in the third quarter.

China has recently introduced a series of economic stimulus measures. These are aimed at reviving the economy, which has been weakened by COVID-19, the real estate market slump, and supply chain disruptions. In particular, concerns have grown that the high-intensity "Zero COVID" containment measures implemented during the pandemic response have deepened the economic slowdown, prompting stronger efforts toward economic stimulus.

There are also forecasts that China will struggle to achieve its target economic growth rate of around 5.5% this year. The South China Morning Post reported that China’s GDP growth rate for the second quarter of this year is expected to be only 1.4% compared to the same period last year.

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