China urgently overflowing 1 trillion yuan in infrastructure projects.

According to the Financial Times, the Chinese authorities are tasked three state banks to issue bonds worth 1 trillion yuan (about $ 161 billion) and redirect those funds to several infrastructure projects. The volume of the first issue of 300 billion yuan ($ 48 billion). The direction is towards housing.

CB of China continues to try various monetary tools to stimulate the Chinese economy amid steadily declining investment flows. Financial Times commented that Beijing is frightened by the continuing collapse of the stock markets in the country, as well as the negative trend of the China PMI. This is the reason the government actively to seek any means to infuse new funds into the real economy.

On the other hand, the debts of Chinese companies in July reached $ 16.1 trillion (the amount is nearly 160% of GDP of the country). According to Standard & Poor's that is more than double the equivalent index in the US. The problem is that for more than five years the Chinese authorities constantly trying to increase capital flows to the real sector, but declining prices and declining growth difficult debt service. Excessive liquidity has worried investors and is directly related to the stock market crash in Shanghai.

So far the results of the actions of the Chinese authorities are not successful.