China Pushes Financial Institutions to Play Bigger Role in Boosting Consumption

Beijing: China has issued a new policy directive asking financial and commerce authorities to work more closely to strengthen consumer spending, a key pillar of the country’s economic growth strategy.

The directive, released jointly by the Ministry of Commerce, the People’s Bank of China, and the National Financial Regulatory Administration, sets out steps to channel more financial resources toward priority consumption sectors and stimulate domestic demand.

 

Closer Coordination at Local Level

The policy calls on local governments to improve coordination between commerce departments and financial regulators. Authorities are encouraged to use support tools such as credit guarantees and interest subsidies to guide lending toward important consumer-related industries.

The document also promotes wider use of the digital yuan (digital RMB) to make consumption-support policies more efficient and easier to implement.

Focus on Goods Upgrades and Trade-In Schemes

Banks and financial institutions have been advised to improve financing services for high-value consumer goods, including durable products and electronics. The policy supports trade-in programs, recommending that loan pricing and repayment periods be set according to individual credit profiles.

Expanding Financial Support for Services

Greater emphasis has been placed on the services sector, with encouragement for innovative financial products tailored to industries such as elder care, tourism, catering, and education.

New Consumption Models and Technology Use

The directive also highlights the need to nurture emerging consumption patterns, including green consumption, digital scenarios, and the so-called “debut economy.” Financial institutions are encouraged to explore the use of artificial intelligence to further stimulate consumer activity.

En

couraging Domestic and Inbound Spending

Additional financial backing has been promised for national consumption campaigns and the development of international consumption hub cities. The policy also aims to improve spending by foreign visitors by making payment systems more convenient and accessible.

Better Credit Access for Small Businesses

To ensure funding reaches businesses that need it most, the directive calls for improved information sharing on credit data for micro and small enterprises in the commerce sector. It also encourages coordinated promotional efforts involving government agencies, banks, and merchants to create stronger momentum for consumption growth.