The People's Bank of China (PBOC) issued the Notice on Matters Relating to the Establishment of Service Consumption and Pension Refinancing to set up service consumption and pension refinancing to encourage and guide financial institutions to increase financial support for key areas of service consumption like accommodation & catering, sports & entertainment and education and the elderly care industry.

Specifically, the service consumption and pension refinancing loan amount was RMB500 billion, with an interest rate of 1.5% per annum for a period of one year, which can be extended twice, and the maximum period of use is not more than 3 years. The policy will be implemented until the end of 2027.

Related NewsVehicle Sales YoY for Apr in China is 9.8%, higher than the previous value of 8.2%.
The issuance targets include 21 national financial institutions such as China Development Bank, policy lenders, state-owned commercial banks, the PSBC and joint-stock commercial banks, as well as five city commercial banks which are systemically important financial institutions such as Bank of Beijing and Bank of Ningbo.