Establishing new policy oriented financial instruments is an important aspect of this year's more proactive macroeconomic policies. The reporter learned from the press conference held by the National Development and Reform Commission on September 29th that the scale of new policy based financial instruments is 500 billion yuan, all of which are used to supplement project capital and are currently being invested in specific projects. Experts suggest that new policy based financial instruments, after being injected as project capital, will be used in a combination of "capital support+bank loans" to further amplify the leverage effect and become an important support for stable investment. Li Chao, Deputy Director of the Policy Research Office of the National Development and Reform Commission, stated that in order to promote better financial services for the real economy and expand effective investment, the National Development and Reform Commission and relevant parties actively promote the work related to new policy based financial instruments. The scale of new policy financial instruments is 500 billion yuan, all of which will be used to supplement project capital. We are working closely with relevant parties to invest funds from new policy based financial instruments into specific projects. In the future, we will urge localities to accelerate the construction of projects, form more physical workloads as soon as possible, promote the expansion of effective investment, and promote stable and healthy economic development, "said Li Chao. At present, actively promoting new policy based financial instruments is mainly aimed at expanding investment. ”Wang Qing, the chief macro analyst of Orient Jincheng, said that due to the fluctuation of the external environment, the continuous adjustment of the real estate market, the tension of the local government's broad fiscal revenue and expenditure and other factors, the national fixed assets investment in the first eight months increased by 0.5% year on year, of which the infrastructure investment (excluding power) increased by 2.0% year on year, and the broad infrastructure investment increased by 5.4% year on year, both of which showed a downward trend compared with the whole year last year. Considering that the impact of the external environment on global trade and China's exports may be further reflected in the fourth quarter, coupled with the high base effect brought about by a package of incremental policies in the same period last year, the necessity of strengthening and stabilizing growth and employment has increased in the fourth quarter, making it particularly urgent to expand investment. There are precedents for creating policy based financial instruments to stabilize the macro economy and support major national projects. In 2022, China will launch policy oriented development financial instruments, with the establishment of infrastructure funds by the China Development Bank, the Agricultural Development Bank of China, and the Export Import Bank of China to raise funds to support major infrastructure projects. Two batches of policy oriented development financial instruments totaling 740 billion yuan have played an important role in effectively supplementing capital for major projects and leveraging social investment. In fact, recently, local authorities have been planning in advance to reserve projects related to new policy based financial instruments. From the project application training and coordination meetings held in various regions, it can be seen that the investment of new policy based financial instruments may cover multiple fields such as digital economy, artificial intelligence, green and low-carbon, transportation and logistics, and urban renewal. For example, Qinshui County, Jincheng City, Shanxi Province, recently held a planning and promotion meeting for new policy based financial instrument projects, stating that there are many reserve projects in the fields of transportation and logistics, urban renewal, green and low-carbon transformation, among others. The Development and Reform Commission of Pukou District, Nanjing City, Jiangsu Province revealed that in order to promote project reserves, a number of high-quality projects have been launched, including the IC Integrated Circuit Research and Innovation Park, Pukou Atomic Pole Industrial Park, and Ink Painting Danian Scenic Area upgrade, focusing on the digital economy, artificial intelligence, green low-carbon and other fields supported by new policy financial tools, combined with the functional positioning of various park platforms. The new policy based financial instruments, as capital, will mainly be invested in the infrastructure sector, with a focus on addressing the prominent problem of insufficient capital for some project construction caused by tight local finances, thereby driving the investment of bank supporting loans. It is expected that three policy banks will still participate in this new policy financial instrument. But unlike before, the new policy based financial instruments will focus on supporting areas such as technological innovation, consumption, and infrastructure construction, reflecting the dual goals of expanding investment and promoting economic transformation and upgrading. ”Wang Qing said. The Chief Economist of CITIC Securities clearly stated that based on the experience of similar tools in 2022, policy funds have effectively driven the accelerated growth of infrastructure investment. All 500 billion yuan this time will be used to supplement project capital, which will help solve the bottleneck problem of insufficient capital for major projects, enhance project financing capabilities, leverage bank loans and social capital, and form a multiplier effect. Experts suggest that in the future, new policy based financial instruments can determine and optimize the scope of support areas based on development plans and industrial policy directions, support the expansion of effective investment in specific areas, and better play the key role of investment in optimizing the supply structure. (New Society)