General Office of the Ministry of Commerce, General Office of the People’s Bank of China, General Office of the National Financial Regulatory Administration

Notice on Strengthening Business and Financial Coordination to Boost Consumption with Greater Efforts

To the competent commercial departments of all provinces, autonomous regions, municipalities directly under the Central Government, cities specifically designated in the state plan, and the Xinjiang Production and Construction Corps; the Shanghai Head Office of the People’s Bank of China; the branches of the People’s Bank of China in all provinces, autonomous regions, municipalities directly under the Central Government, and cities specifically designated in the state plan; the regulatory bureaus of the National Financial Regulatory Administration; all policy banks, large banks, and joint-stock banks; all insurance group (holding) companies and insurance companies:

To thoroughly implement the decisions and arrangements of the Party Central Committee and the State Council, strengthen collaboration between the business and financial systems, guide financial institutions to focus on key consumption areas and increase support, and help boost and expand consumption, the relevant matters are hereby notified as follows:

I. Deepen Collaboration Between Business and Financial Systems

(1) Improve the Collaboration Mechanism. Local commercial departments and financial regulatory authorities should strengthen communication, exchange, division of labor, and cooperation. They should establish and improve coordinated working mechanisms based on actual conditions to promote the resolution of difficulties and problems encountered in implementing financial support for consumption expansion. Regions with the necessary conditions are encouraged to improve communication and cooperation mechanisms with financial institutions, launch specialized work plans, etc., to guide financial institutions to enrich financial products and services and increase financial supply to the consumption sector in accordance with market-oriented and rule-of-law principles.

(2) Refine Implementation Measures. Local commercial departments, in conjunction with consumption expansion efforts, should strengthen policy coordination, work alignment, and information sharing with financial regulatory authorities to further mobilize financial resources and ensure the effective implementation of relevant policies and measures. Financial institutions should, in accordance with the requirements of existing policies such as the “Guiding Opinions on Financial Support for Boosting and Expanding Consumption” and the “Notice on Developing Consumer Finance to Help Boost Consumption,” coordinate internal resources, proactively provide services, formulate specific implementation rules, carry out special campaigns, etc., to support boosting and expanding consumption.

(3) Strengthen Policy Synergy. Local commercial departments are encouraged to make full use of existing funding channels, actively carry out consumption promotion activities, and form synergy with financial support to better stimulate consumption potential. Regions with the necessary conditions are encouraged to use digital yuan smart contract red packets to enhance the quality and effectiveness of consumption promotion policies. Based on local realities, explore the use of various methods such as financing guarantees, loan interest subsidies, and risk compensation to strengthen the coordinated application of fiscal, commercial, and financial policies, guiding increased credit fund allocation to key consumption areas. Regions with the necessary conditions are encouraged to support participation in key consumption projects such as health and elderly care, culture and tourism, and new consumption areas such as digital and green consumption through various means. Banks and non-bank financial institutions are encouraged to leverage their respective characteristics, strengthen complementary advantages, and jointly participate in consumption promotion activities to promote the qualitative upgrading of consumption.

II. Increase Financial Support for Key Consumption Areas

(4) Upgrade Goods Consumption. Strengthen consumer financial services for major durable goods, digital products, etc., to tap the potential for upgrading goods consumption. Promote cooperation between financial institutions and platforms, key merchants, entering supermarkets and shopping malls, and improve product service models such as installment payments, credit cards, mobile banking, and digital yuan to better meet consumer replacement needs. Based on customers’ repayment capacity and credit status, reasonably determine loan disbursement ratios, terms, and interest rates, implement differentiated policies for personal consumer loan amounts, terms, and interest rates, and accelerate the development of personal consumer loan business. Appropriately reduce penalties for early loan settlement incurred during the process of automobile trade-ins. Strengthen connections between financial institutions and key enterprises and platforms for integrated domestic and foreign trade, provide domestic and international transaction matching services, improve cross-border supply chain financing models, support more enterprises in integrated domestic and foreign trade operations, expand the scale of domestic trade insurance underwriting, and support more high-quality foreign trade products entering the domestic market.

(5) Expand Service Consumption. Improve the “1+N” policy measures system and increase policy support for service consumption. In line with the development trends and characteristics of key service consumption areas such as housekeeping, accommodation and catering, cultural and sports entertainment, education, tourism, elderly and child care, innovate financial products and services, embedding them more into consumption scenarios and integrating them into the consumption ecosystem. Make full and effective use of service consumption and elderly care relending facilities to incentivize and guide financial institutions to strengthen connection services and actively issue loans to business entities in the service consumption and elderly care sectors

Ministry of Commerce

The Ministry of Commerce of the People’s Republic of China is the executive department of the State Council responsible for formulating and implementing policies on domestic and foreign trade, international economic cooperation, and foreign investment. It was established in its current form in 2003, succeeding earlier departments that managed trade and economic relations since the founding of the People’s Republic. Its work is central to China’s economic development and its integration into the global trading system.

People’s Bank of China

The People’s Bank of China (PBoC) is the central bank of the People’s Republic of China, founded in 1948 in Shijiazhuang, Hebei Province, shortly before the establishment of the PRC. It is responsible for monetary policy, financial stability, and currency issuance, and its role has evolved significantly with China’s economic reforms, becoming a key institution in managing the world’s second-largest economy.

National Financial Regulatory Administration

The National Financial Regulatory Administration (NFRA) is a Chinese government agency established in 2023 as part of a major institutional reform to consolidate oversight of the country’s financial sector, excluding securities. It replaced the China Banking and Insurance Regulatory Commission (CBIRC) to create a unified regulator for most financial institutions, aiming to improve stability and reduce systemic risks. Its formation represents a significant shift towards a more centralized and powerful regulatory model in China’s financial system.

Party Central Committee

The “Party Central Committee” refers to the core leadership body of the Communist Party of China (CPC), which is the highest decision-making authority when the National Congress is not in session. Historically, it has been the principal institution guiding the Party and the country’s development since the CPC’s establishment, implementing policies and strategies in accordance with Marxist-Leninist principles adapted to Chinese conditions. Its members are elected by the National Congress and it operates under the leadership of its Political Bureau and its Standing Committee.

State Council

The State Council is the chief administrative authority of the People’s Republic of China, functioning as its cabinet and executive body. It was established by the 1954 Constitution, succeeding the former Government Administration Council, and is responsible for implementing the laws and policies set by the National People’s Congress. Led by the Premier, it oversees all ministries and commissions, managing the day-to-day governance of the country.

Xinjiang Production and Construction Corps

The Xinjiang Production and Construction Corps (XPCC or Bingtuan) is a unique state-owned economic and social organization in China’s Xinjiang region, established in 1954 with demobilized soldiers to develop frontier lands and stabilize the border. It functions as a quasi-military entity with its own administrative and economic systems, engaging in agriculture, industry, and various social services. Historically, it has played a significant role in the region’s development, settlement, and the government’s policies in Xinjiang.

Shanghai Head Office of the People’s Bank of China

The Shanghai Head Office of the People’s Bank of China is the central bank’s key regional branch, historically significant as it operates in the city that was China’s primary financial center before 1949. Established after the founding of the People’s Republic, it plays a crucial role in implementing monetary policy and overseeing financial institutions in eastern China. Its location underscores Shanghai’s enduring importance in the nation’s economic framework.

digital yuan

The digital yuan, officially called the Digital Currency Electronic Payment (DCEP), is China’s central bank digital currency (CBDC) developed by the People’s Bank of China. It was launched after years of research and pilot programs, beginning around 2014, as a state-backed digital version of the physical renminbi. Its creation aims to modernize the payment system, increase financial inclusion, and provide the government with greater oversight over the currency in the digital economy.