19 financial measures unveiled to boost consumption in China

China’s central bank and five other government divisions have unveiled new guidelines on Tuesday to boost domestic consumption, outlining 19 measures to enhance consumer purchasing power while expanding financial support for key sectors. 

As part of the proposed guidelines, the authorities are urged to strengthen financial support for private enterprises, micro and small businesses, and self-employed individuals through deeper implementation of business loan schemes. Alongside this, authorities are advised to adopt flexible eligibility criteria and simplify approval procedures.

Looking into specific consumption sectors, the guidelines prioritise credit expansion for wholesale, retail, accommodation, catering, cultural, sports, entertainment, tourism, education, and household services. A dedicated RMB 500 billion re-lending facility for service consumption and elderly care has been established, allowing 21 national financial institutions and five systemically important city commercial banks to claim 100% re-lending against eligible loans in key service sectors.

To align with evolving spending trends such as digital, green, and experiential consumption, banks are urged to develop financial products and collaborate with retailers on promotional campaigns while offering consumer incentives.

Meanwhile, the guidelines encourage partnerships with social commerce and livestreaming platforms to meet merchant and consumer financing needs.

Additional efforts focus on improving accessibility for elderly users and foreign visitors, including optimised foreign card acceptance and expanded credit card use. Pilot regions test further integration of the digital yuan in consumer transactions.

Diversified financial backing

To diversify consumer financing channels, the guidelines emphasise auto finance firms’ specialised functions to expand credit product offerings for car purchases and strengthen dealer financing support. Financial institutions, including commercial banks, consumer finance companies, auto lenders, and microcredit providers, are encouraged to collaborate under regulatory guidelines.

Financial services for consumer goods trade-in programmes is also a highlight of the guidelines, with emphasis on support for the replacement of end-of-life vehicles, household appliances, home furnishings, and daily necessities. Meanwhile, the guidelines encourage risk-based auto loans and waiving early repayment fees for trade-ins, while boosting financial support for energy-efficient and smart home appliances.

In terms of infrastructure development, the guidelines focus on innovative financing solutions for cultural, tourism, and sports facilities, event venues, healthcare and elderly care infrastructure, telecommunications base stations, charging equipment, and age-friendly renovations. Financial institutions are urged to tailor products and lending models to match the unique capital requirements of these projects.

Moreover, the guidelines target international consumption hub cities and the development of new business formats, models, and commercial scenarios. End-to-end financial services for projects are also advised, including pedestrian street and commercial district upgrades, community convenience facilities, and county-level commercial systems, facilitating a comprehensive financing approach for the sector’s growth and modernisation.

Don't miss: China’s retail sales growth slow in April

This new guideline comes after China retail sales growth slowed down in April. According to the National Bureau of Statistics (NBS), China's retail sales rose by 5.1% YoY in April 2025, reaching RMB 3.72 trillion.

However, the figure fell short of market expectations of 5.5% and marked a slowdown from 5.9% back in March.

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