The People's Bank of China announced that China has injected USD 48 billion and USD 45 billion from its foreign exchange reserves into the China Development Bank and the Export-Import Bank of China respectively.

Anbound's scholars are of the view that the injection of fund into the policy banks by using the foreign exchange reserve is to tie the nation’s credit with state-owned policy banks with the aim to further the credit expansion.

However, the credit expansion will eventually become the government’s debt. Therefore, the degree of the nation’s credit expansion should be carefully moderated.