CDB Deploys First Loan Under New Policy Financial Instrument Round

China Development Bank's Sichuan branch disbursed 245 million yuan on September 2 to support an electric vehicle and energy storage battery base in Zigong. The transaction represents the first deployment under China's latest round of "new policy-based financial instruments" across both Sichuan Province and the state policy lender's nationwide network. Designed to provide equity capital for strategic priority projects, the initial funds target a facility operated by battery maker CALB in the Zigong High-Tech Industrial Development Zone.

This initial disbursement signals the operational launch of Beijing's latest policy-financing cycle. By using state-backed policy instruments to inject equity capital directly into advanced manufacturing rather than traditional municipal infrastructure alone, policymakers are demonstrating a clear preference for funding strategic emerging sectors, specifically green technology and regional battery supply chains.

The Sichuan branch of China Development Bank has disbursed 245 million yuan to support a major power and energy storage battery project, marking the operational start of a new round of state-directed policy financing, according to People's Daily. The transaction, completed on September 2, represents the first disbursement under the latest "new policy-based financial instruments" both within Sichuan Province and across the policy bank's nationwide system. The capital was allocated to support CALB's power and energy storage battery base, located in the Zigong High-Tech Industrial Development Zone. According to state media, the project is intended to anchor industrial chain clustering for new-energy manufacturing in Zigong, supporting Sichuan's broader strategic ambition to establish a world-class power battery industrial cluster. The development was characterized as an effort to advance green, low-carbon development and bolster national strategic emerging industries. China's policy-based financial instruments are structured by central authorities to support major strategic initiatives by replenishing capital for key projects facing equity shortfalls. According to official guidelines, these tools primarily target four designated areas: technological innovation, expanding domestic consumption, green and low-carbon initiatives, and major infrastructure development. By addressing equity requirements at the project level, such instruments are designed to facilitate subsequent debt financing from commercial lenders. A representative from China Development Bank's Sichuan branch stated that the branch will focus on its core policy mandates, maintain targeted and compliant execution, and pursue operational efficiency to support local economic development. The launch of this round highlights Beijing's continued reliance on policy financial institutions to direct targeted capital toward strategic industries while navigating ongoing economic stabilization efforts.