Six Authorities Introduce 19 Financial Measures to Stimulate Consumption Across Key Sectors, with Focus on Residential Services and Innovative Financing Models

Recently, the People’s Bank of China, in collaboration with five other departments, issued the Guiding Opinions on Financial Support to Boost and Expand Consumption (hereinafter referred to as the Opinions). The document emphasizes enhancing the role of structural monetary policy tools and increasing credit support for key service consumption areas, while encouraging the development of diversified financing channels including bonds and equity. It also underlines the importance of tailoring financial products to consumption scenarios and characteristics to improve targeted financial support.

According to multiple industry sources cited by Cailian Press, the Opinions outline 19 key initiatives across six focus areas: enhancing consumer spending power, expanding financial supply in consumption-related sectors, unlocking consumer potential, improving supply efficiency, optimizing the consumption environment, and strengthening policy support. These initiatives aim to provide robust financial backing for consumption as a foundational driver of economic growth.

The Opinions propose support for eligible companies in the cultural, tourism, and education service sectors to issue bonds, while encouraging qualified tech enterprises to raise funds through the bond market. Support is also extended to equity investments in seed and early-stage companies, and to high-quality enterprises within the consumption industry chain via public listings and “New Third Board” registrations. Three major financial directions are clearly defined: enhancing consumer purchasing power, improving consumption supply efficiency, and strengthening basic financial services. Analysts noted that the current consumption infrastructure, particularly in county-level logistics and supply chains, remains underdeveloped and continues to limit market expansion and quality improvement.

The document calls for increased financial innovation to support infrastructure construction in areas such as elderly-friendly renovations, sports facilities, and charging equipment. It also targets commercial logistics projects involving transport, logistics, and supply chain upgrades. Financial institutions are encouraged to develop products tailored to the capital needs of such projects, rationally set loan terms, and boost loan issuance to enhance consumption supply effectiveness. Eligible consumption infrastructure projects are encouraged to issue infrastructure real estate investment trusts (REITs).

According to Yan Yuejin, Deputy Director of the E-House China Research Institute, the investment in supporting infrastructure will expand, especially in conjunction with urban renewal initiatives and existing commercial real estate projects, which are expected to receive greater financial support. The inclusion of infrastructure REITs is seen as directly beneficial to cultural tourism and commercial real estate companies, expanding their financing channels.

The Opinions designate goods consumption, service consumption, and new forms of consumption as key targets for financial support. Analysts point out that the central government's Special Action Plan to Boost Consumption is focused on these areas to unlock potential in the consumer market. Durable goods consumption has reached a relatively high level due to policies encouraging the replacement of old products with new ones. In 2024, goods consumption in China accounted for a GDP share comparable to that of the United States.

Meanwhile, service consumption still holds considerable growth potential. In 2024, it represented 18% of GDP in China, while in developed economies this figure generally exceeds 40%, indicating a substantial gap. As disposable income continues to rise, demand for new forms of consumption is also increasing.

To strengthen service consumption, the Opinions propose expanding financing for businesses in sectors such as wholesale and retail, accommodation and catering, domestic services, and eldercare and childcare. Financing innovation is also encouraged in cultural tourism, sports, entertainment, education and training, and residential services to stimulate demand for upgraded service consumption. Yan Yuejin emphasized that the concept of “service consumption” is gaining prominence and is becoming a critical force in boosting domestic consumption. Residential services cover home rental, property management, renovation and maintenance, community convenience services, and other offerings aimed at improving and upgrading the living environment.
The Opinions support the development of innovative financial models within the residential sector to stimulate demand for improved services. This is expected to create greater opportunities in the rental, property management, and renovation markets. As the second-hand housing market continues to recover, demand for associated renovation is projected to rise, supporting the growth of renovation and renovation loan services.

To support new types of consumption, the Opinions highlight the need to explore effective financial channels for digital, green, and health-related consumption. It stresses the importance of financial innovation and the development of products and services that align with the evolving needs of emerging consumption trends