The People's Bank of China and seven other authorities issued joint guidance setting out 19 measures to direct more financing toward priority and underserved areas of the service sector. The measures call on financial institutions to move away from lending models centered on physical assets and collateral, improve financing access for light asset businesses, small and midsize enterprises and sole proprietors, and strengthen support for both producer and consumer services. National banks are expected to select three to five priority areas, while local incorporated banks should develop tailored products for one or two sectors aligned with regional needs. Financial institutions are encouraged to expand first time, unsecured and longer term lending, use intellectual property and other intangible assets as collateral, develop supply chain finance and apply data and technology to credit assessment. The guidance also promotes bond and equity financing, venture and industrial investment funds, asset securitization, real estate investment trusts and leasing, alongside insurance products suited to service businesses. Priority areas include technology services, logistics, software and artificial intelligence, environmental services and cross-border business services, as well as hospitality, retail, elderly care, childcare, health, culture, tourism and sports. The measures also cover payment and credit reporting services, cross-border renminbi settlement, financial consumer and investor protection, and fiscal incentives including relending, interest subsidies and government financing guarantees. The People's Bank of China will work with the other authorities to transmit the policy and accelerate implementation.

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