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PBOC & 5 Other Departments Intend to Step Up Financial Support for Key Consumption Sectors, Actively Promote Auto Loan Biz
The People's Bank of China (PBOC) and five other departments have issued the Guiding Opinions on Financial Support to Boost and Expand Consumption.The opinions rolled out 19 me...
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PBOC & 5 Other Departments Intend to Step Up Financial Support for Key Consumption Sectors, Actively Promote Auto Loan Biz
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The People's Bank of China (PBOC) and five other departments have issued the Guiding Opinions on Financial Support to Boost and Expand Consumption.

The opinions rolled out 19 measures focused on key areas and links in consumption, aiming to unlock and unleash consumer potential through stronger financial backing.

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Regarding efforts to expand goods consumption, the opinions encouraged financial institutions to provide diversified and innovative financial services for trade-in programs of consumer goods, and increase credit support for companies involved in scrapping and dismantling old vehicles, recycling used home appliances, home appliance trade-ins, home renovation and kitchen or bathroom upgrades, and ensuring the supply of daily necessities.

Meanwhile, efforts were urged to develop the auto loan business, reasonably setting loan amounts, terms, and interest rates based on borrowers' creditworthiness and repayment ability. Penalties for early loan repayment during vehicle trade-ins will also need to be appropriately reduced or waived.

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