The People's Bank of China, together with the State Administration of Financial Regulation, the China Securities Regulatory Commission and the Ministry of Agriculture and Rural Affairs, issued a joint set of Opinions setting out a “normalised” financial support mechanism aimed at preventing a return to poverty and supporting comprehensive rural revitalisation. The package centres on adjusting and optimising poverty alleviation microcredit and rural household microloans, directing incremental financial resources and services to priority rural areas and key groups, and strengthening the use of banking, bond, capital market and insurance channels. The Opinions call for a tiered support approach for underdeveloped areas, including greater resource tilts to ethnic minority, old revolutionary and border areas, and strengthened support for key counties and relocation resettlement areas. Priority service areas include grain and oil production and broader agricultural capacity, supply-chain finance across the agricultural industry chain (including accounts receivable financing), county-level industries, and increased medium- and long-term funding for rural infrastructure and agriculture–culture–tourism projects. Measures also cover expanding rural financial service capacity and digital transformation, including fintech-enabled rural revitalisation pilots, mobile payment penetration, and ongoing rural credit profiling initiatives. Cross-market coordination measures include encouraging eligible institutions to issue special-purpose financial bonds (including for small and micro enterprises, Three Rural Areas and green projects), building capital market support including continued green-channel listing policies for enterprises registered in former poverty alleviation areas, and developing insurance offerings, alongside a differentiated supervisory approach under which agriculture-related loan non-performing loan ratios in areas at risk of returning to poverty and underdeveloped areas that are up to three percentage points higher than an institution’s own loan book are not to be used as a deduction factor in regulatory evaluation and internal assessment. The next phase focuses on implementation coordination and follow-through, including strengthened statistical monitoring, assessment and evaluation, and work to summarise and replicate service models and to refine investment and financing mechanisms supporting rural revitalisation.

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