Central Bank: Expand financing channels and increase credit in the consumer sector

Changjiang Business Daily News● Comprehensive report by Changjiang Business Daily reporter Lei Jing
At a press conference held by the State Council Information Office, Yang Hong, head of the Credit Market Department of the People's Bank of China, introduced that the People's Bank of China has issued a series of financial support policies, effectively driving the expansion of service consumption supply and supporting better meeting residents 'service consumption needs.
The first is to establish two structural monetary policy tools. One is service consumption and pension refinancing. In May 2025, the People's Bank of China set up a special 500 billion yuan service consumption and pension reloan to guide financial institutions to increase credit in key areas of service consumption such as accommodation, catering, culture, sports and entertainment, education, resident services, and tourism, and the pension industry. At present, financial institutions have applied for nearly 60 billion yuan in service consumption and pension reloans, involving nearly 4000 business entities and more than 5700 loans. The other is refinancing for technological innovation and technological transformation. In April 2024, the People's Bank of China established a 500 billion yuan reloan for scientific and technological innovation and technological transformation to encourage and guide banks to increase credit support for equipment renewal projects in key areas. In 2025, the scale will be expanded to 800 billion yuan. Equipment renewal projects in qualified service consumption fields can also enjoy policy incentives. In the first half of 2025, reloans for scientific and technological innovation and technological transformation supported nearly 100 projects in the fields of accommodation consumption, culture and sports, education, and tourism, and signed loan contracts of approximately 11.9 billion yuan.
The second is to guide financial institutions to innovate products and services and increase credit in the consumer sector. Since 2025, the People's Bank of China has issued a number of policies to guide financial institutions to improve internal business processes, innovate products and services that support consumption, focus on key consumption areas such as food, housing, transportation, tourism, shopping, and entertainment, and work from both sides of supply and demand, especially from the supply side, to expand the supply of high-quality credit, increase support for first loans, renewal loans, credit loans, medium and long-term loans to business entities in the consumer industry, and strengthen financial support to boost and expand consumption. Promote effect. As of the end of July, the loan balance in key areas of service consumption nationwide reached 2.79 trillion yuan, a year-on-year increase of 5.3%, an increase of 164.2 billion yuan from the beginning of the year. New loans in the first seven months were 63 billion yuan more than the whole of last year.
The third is to give full play to the synergy of policies. The People's Bank of China and local commercial departments promote the docking of banks, government and enterprises, and face to face the financial needs of business entities in the service consumption industry, especially private small, medium and micro enterprises. The Ministry of Finance recently introduced a policy of interest discount for personal consumption loans and service industry business entities. The People's Bank of China cooperates with the Ministry of Finance to implement the policy, guides financial institutions to make full use of the policy, increases credit lending, and optimizes consumer financial products and services.
The fourth is to broaden financing channels for financial institutions and enhance the ability to supply funds in the consumer sector.The People's Bank of China supports qualified financial institutions in issuing financial bonds, etc., broadens funding sources, improves consumer credit supply capabilities, promotes the incremental expansion of securitization of retail loan assets such as credit cards, revitalizes credit stocks, and promotes a decline in financing costs. As of the end of July, auto finance companies and others issued 21.5 billion yuan in financial bonds and 48.4 billion yuan in credit asset-backed securities.
"In the next stage, the People's Bank of China will work with the departments of commerce, development and reform, culture and tourism, finance and other departments to implement various policies that have been introduced, effectively transmit policy benefits to business entities and consumers in the service consumption field, and enhance the people's sense of gain." Yang Hong emphasized.