The People's Bank of China, together with the National Development and Reform Commission, the Ministry of Finance, the Ministry of Commerce, the National Financial Regulatory Administration and the China Securities Regulatory Commission, issued joint guidance on using financial policy to stimulate and expand consumption. The package sets out 19 measures spanning consumer purchasing power, the supply of consumer-focused finance, demand activation, support for consumption-related supply capacity and infrastructure, and improvements to payment, credit and consumer protection arrangements. A central measure is the establishment of a CNY 500 billion “service consumption and elderly care” relending facility, under which 21 nationwide financial institutions and five systemically important city commercial banks can apply for relending equal to 100% of the principal of eligible loans to key service-consumption sectors. The guidance also promotes greater credit support for trade-in programmes, including provisions to appropriately reduce or waive early repayment penalties on auto loans in trade-in scenarios, and encourages broader funding channels via bonds, equity and securitisation, including bond issuance by eligible service-consumption firms and by consumer finance, auto finance and financial leasing companies, and expanded securitisation of retail loan assets. It further calls for upgraded payment services across cash, bank cards, mobile payments and e-CNY, strengthened consumer credit information sharing, and tighter expectations for financial consumer protection covering disclosure, marketing, data and personal information protection, partner management and overdue collection practices. The People's Bank of China will work with the other agencies to accelerate implementation, strengthen tracking and monitoring, and guide financial institutions to increase support for consumption-related sectors.
Central Bank of the Republic of China 2025-06-24
People's Bank of China and five agencies issue guidance to boost consumption finance and create a CNY 500 billion relending facility for service consumption and elderly care
The People's Bank of China and national agencies issued guidance to boost consumption via financial policy, detailing 19 measures, including a CNY 500 billion relending facility for service consumption and elderly care. The guidance promotes credit support for trade-in programs, expanded funding channels, and enhanced payment services, emphasizing consumer protection and credit information sharing. The People's Bank of China will collaborate with other agencies to expedite implementation and monitor progress.