Chief Expert at the Shanghai Laboratory for Finance and Development, Zeng Gang: Banks should design preferential interest loan products to accurately meet the funding needs of individual consumption and service industry operators.

The State Council executive meeting held on July 31 deployed the implementation of the policy of interest subsidies for personal consumer loans and interest subsidies for service industry operating entities. Zeng Gang, chief expert and director of the Shanghai Financial and Development Laboratory, stated that the core of this interest subsidy policy is to boost consumption and activate the market through financial and fiscal linkage. The policy focuses on both the supply and demand sides of "personal consumption" and "service industry operating entities", aiming to stimulate consumption potential, enhance market vitality, hedge against external demand fluctuations, promote economic growth, and promote the long-term transformation of the economic structure by reducing the credit costs for residents and financing costs for service industry operating entities, as well as upgrading consumption infrastructure and improving service capabilities.