China's central bank doubles down on financing support to boost consumption
China is doubling down on its efforts to encourage domestic consumption, with the central government and the country's wealthiest province rolling out policies aimed at providing structural financial support and on-the-ground incentives.
Continued policy support is crucial to keep China's domestic consumption afloat as trade uncertainties and unemployment pressures persist, analysts said.
The People's Bank of China (PBOC) said on Tuesday that a 500 billion yuan (US$69.68 billion) relending quota announced last month will help 21 national financial institutions and five key city commercial banks establish consumption and aged care loans.
'We will strengthen incentives with structural monetary policy tools to encourage and guide financial institutions to extend loans to various types of business entities in key areas of service and consumption,' the PBOC said in guidance issued with five other government departments.
The document contains 19 initiatives covering financial support measures for consumers and sellers.
China's central bank listed several key sectors it aims to support, including retail, hotels, restaurants, sports, entertainment and tourism.
'We will guide financial institutions to continuously increase financial support in the area of consumption and provide strong financial support for consumption to fulfil its fundamental role in our economic development,' it said.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
South China Morning Post
28 minutes ago
- South China Morning Post
Asean can ‘shape its own destiny' amid US-China rivalry: Singapore PM Wong
Southeast Asian countries can shape their own destiny amid the deepening US-China rivalry, and the region seeks to be an 'inclusive arena' where both powers are actively engaged, according to Singapore's prime minister Lawrence Wong , speaking on Wednesday at a dialogue as part of a World Economic Forum (WEF) meeting in Tianjin, said countries from the Association of Southeast Asian Nations (Asean) collectively made up a sizeable economy with 'considerable heft'. Asean has the ability to shape its own destiny, to shape its own future. Asean was the arena for proxy wars during the Cold War. We don't want that to happen again,' he told the meeting, more commonly known as Summer Davos. According to Wong, the regional bloc's approach to great power competition is clear: it rejects zero-sum competition and embraces engagement with the US, China and other powers. Southeast Asia counts the US as its biggest investor and China as its largest trading partner. 'We want both to be actively engaged. We want other major powers to be actively engaged. And we want the region to be an open and inclusive arena where people have stakes in … and we can all work together for shared prosperity,' he said.
South China Morning Post
30 minutes ago
- South China Morning Post
China to private enterprises: invest in cross-border infrastructure like AIIB is doing
China will significantly encourage private enterprises to participate in infrastructure projects, including cross-border connectivity initiatives championed by the Asia Infrastructure Investment Bank (AIIB), Minister of Finance Lan Foan said at the lender's annual meeting. As the global economy slows and international development aid declines, developing countries are increasingly constrained by limited public resources for connectivity investments, Lan said at the meeting in Beijing on Wednesday. 'Mobilising the potential of private capital for cross-border infrastructure, and building sustainable financing mechanisms, have become pressing priorities,' he noted. China's Private Economy Promotion Law went into effect last month, encouraging private enterprises to invest in infrastructure, Lan said, noting that the country would continue to improve its systems and environment to welcome more private sector participation in cross-border connectivity projects. To ensure that the private sector remains confident and willing to invest, Lan also called for efforts to reduce lingering concerns about risks related to geopolitics and defaults, and to improve ratings and expected returns of infrastructure projects through coordination with other regional development institutions. And the further mobilisation of private capital could help overcome the bottleneck of insufficient public investment for infrastructure development, he said.
South China Morning Post
36 minutes ago
- South China Morning Post
Zheng Qinwen's off-court earnings set to top US$30 million after signing up 15th sponsor
World No 5 Zheng Qinwen could find herself climbing to the top of a different rankings list after the Olympic tennis champion signed up her 15th commercial sponsor – making her potentially the highest-paid female athlete if she can back it up on the court. Zheng on Tuesday revealed her partnership with Chinese social media giant RedNote, a move that will only increase her off-court earnings, which surpassed US$15 million in 2024. State media outlets reported that with the country's Instagram-style platform on board, the 22-year-old is projected to earn more than 220 million yuan (US$30.7 million) in off-court earnings this year. 'You know me because of tennis, but do you know that I have other hobbies and interests?' Zheng said in her first video on the platform. 'I like singing, dancing and cute furry pets, and of course I love showing off [my outfits]. 'I know on RedNote that every domain has amazing netizens, and I hope you can introduce them to me.'
