China plans $70 bn capex to fast-track infrastructure projects

China plans to allocate ¥500 billion ($70 billion) of capital that could be leveraged up to fast track new infrastructure projects as authorities seek to cushion the economy from US tariffs, according to people familiar with the matter.

Under the so-called "new financing policy tool," the nation's three policy banks will raise funds and buy stakes in projects, one of the people said, asking not to be identified discussing a private matter. The policy lenders may issue bonds or use other methods to tap financing, according to the person.

The initial capital injection of ¥500 billion could amplify total investments by multiple times that amount, since it allows the projects to raise additional bank loans or other forms of financing, the person said.

Mediation Body in Hong Kong

China signed a convention on Friday setting up a global mediation body in Hong Kong, which aims to be comparable to organisations such as the International Court of Justice (ICJ).

Beijing has taken a more proactive approach in international affairs in recent years, especially as the US has taken the opposite direction under President Donald Trump.

The move is also seen as an attempt to shore up Hong Kong's reputation as a leading place to conduct business, after Beijing's imposition of a wide-ranging national security law in 2020 shook confidence in the impartiality of the city's legal system.