The State Council Information Office held a press conference on September 17. The Deputy Director of the Credit Market Department of the People’s Bank of China stated that the People’s Bank of China has introduced a series of financial support policies, effectively driving the expansion of service consumption supply and supporting better fulfillment of residents’ service consumption needs.
To support the expansion of high-quality service consumption supply, in May of this year, the People’s Bank of China specifically established a 500 billion yuan relending facility for service consumption and elderly care, guiding financial institutions to increase credit support for key areas such as accommodation and catering, culture and entertainment, education, residential services, tourism, and the elderly care industry.
As of now, financial institutions have applied for nearly 60 billion yuan in service consumption and elderly care relending, involving nearly 4,000 business entities and over 5,700 loans. In the first half of this year, relending for technological innovation and technological transformation supported nearly 100 projects in accommodation and catering, culture and education, and tourism sectors, with loan contracts signed totaling approximately 11.9 billion yuan.
In terms of increasing credit supply in the consumption sector, as of the end of July, the outstanding loans in key service consumption areas nationwide reached 2.79 trillion yuan, a year-on-year increase of 5.3%, with an increase of 164.2 billion yuan since the beginning of the year. The new loans in the first seven months exceeded the total new loans of the previous year by 63 billion yuan. As of the end of July, the outstanding consumer loans nationwide, excluding personal housing loans, amounted to 21.04 trillion yuan, an increase of 34.6 billion yuan since the beginning of the year, with a year-on-year growth of 5.34%.
In broadening financing channels for financial institutions and enhancing funding supply capacity in the consumption sector, efforts have been made to revitalize existing credit and promote a reduction in financing costs. From January to July this year, auto finance companies and others issued financial bonds totaling 21.5 billion yuan and issued credit asset-backed securities amounting to 48.4 billion yuan.
