China’s latest pledge to spend big on infrastructure did little to move prices of iron ore and steel — analysts said pumping more money into the economy doesn’t mean people are going to be able to spend it.

China’s State Council announced more stimulus policies on Wednesday including an additional 300 billion yuan ($44 billion) in quotas for infrastructure spending and investments by banks — on top of the 300 billion yuan already announced at the end of June. 

State-owned power generation companies would also be allowed to sell 200 billion yuan of bonds and local governments would be allocated 500 billion yuan of special bonds from previously unused quotas.

It comes as Covid lockdowns and a real estate crisis continued to weigh down on the Chinese economy, and as some investment banks cut China’s GDP growth estimates for this year to about 3%.

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