4 days ago
China Consumer Loan Subsidy Seen Driving Trillions in New Credit
China's fresh consumer subsidy program could spur several trillion yuan in new loans to boost spending, helping the world's second-largest economy amid a tariff standoff with US, analysts said.
The government's plan to support banks in lending to consumers would stimulate 5 trillion yuan ($696 billion) of newly issued loans, assuming the subsidies reach 50 billion yuan, according to a note by analysts led by Wang Xianshuang at China Merchants Securities Co. Other analysts including those at China International Capital Corp. and Guangfa Securities Co. also said the policy will boost bank lending, without providing estimates.
