Implementation Plan for RMB 800 Billion 2026 Policy-Based Financial Instruments Issued

The implementation plan for the 2026 new policy-based financial instruments has recently been issued to local governments, which will conduct project applications accordingly. The fund scale for this year's policy-based financial instruments reaches RMB 800 billion, an increase of RMB 300 billion from 2025. Compared with 2025, in 2026 fiscal authorities will provide interest subsidies for qualifying funds under the new policy-based financial instruments, with the investment allocation emphasizing support for private investment and industrial projects. The National Development and Reform Commission said at a July press conference that it will coordinate the two major construction efforts, seize the peak construction season in the third quarter, accelerate the deployment and use of the RMB 800 billion in new policy-based financial instrument funds, and speed up the issuance and use of special bonds. The implementation plan has clarified overall requirements and supported areas. In 2025, policy-based financial instruments focused on the digital economy, artificial intelligence, consumer infrastructure, and urban renewal fields including transportation, energy, and underground pipeline network renovation and construction. In 2026, the plan further optimizes on this basis, with greater emphasis on supporting private investment projects and industrial projects. In 2026, fiscal authorities will provide interest subsidies for qualifying new policy-based financial instrument funds. According to the Notice on Implementing Interest Subsidy Policies for Loans to Small, Medium and Micro Enterprises issued in January 2026, for new policy-based financial instrument funds used by small, medium and micro private enterprises in their projects, the central government will provide interest subsidies at an annualized rate of 1.5 percentage points on the loan principal, for a term not exceeding 2 years, with a single-entity subsidized loan cap of RMB 50 million. Data from the People's Bank of China show that the weighted average interest rate on new corporate loans issued in July was slightly below 3%, and the subsidy helps reduce related financing costs. In terms of implementation, the 2025 policy-based financial instruments began deployment at the end of September and were fully deployed by the end of October, with RMB 500 billion supporting more than 2,300 projects with total project investment of about RMB 7 trillion. With the 2026 instrument scale expanded to RMB 800 billion, deployment will proceed in accordance with the optimized allocation structure and generate a positive effect on fixed asset investment growth.