(Yicai) June 25 -- China will roll out nearly 20 new measures to increase financial support and boost domestic consumption, targeting goods, services, and emerging technologies.

The 19 measures span six key areas and integrate credit, bond, and equity financing to unlock the country’s consumption potential, according to a policy framework recently released by the People’s Bank of China and five other government agencies.

Public data show that China’s goods consumption as a share of gross domestic product was on par with that of the United States last year. However, service consumption accounted for just 18 percent of GDP, significantly below the roughly 40 percent seen in developed economies -- indicating ample room for growth.

One key category is physical goods. The policy document states that financial institutions should innovate consumer credit products and enhance support for export-oriented companies seeking to expand domestic sales.

In the area of service consumption, China will increase financing for businesses involved in wholesale and retail, catering, accommodation, domestic services, elderly care, and childcare -- sectors seen as vital to unlocking the potential of basic services. Additionally, the country plans to update financing models in sectors such as cultural tourism, sports, entertainment, education and training, and housing services to inject new vitality.

For emerging sectors, the policy encourages the development of tailored financial products to support digital and green consumption.

Funding Conditions

The policy framework also focuses on consumer credit conditions. Banks are urged to improve internal structures, strengthen credit teams, optimize product offerings, and enhance the accessibility and sustainability of consumer financial services.

Corporate funding is another focus. The framework calls for support to eligible companies in culture, tourism, education, and other service industries -- as well as qualified tech firms -- to issue bonds. Startups in the seed and early-growth stages should receive more support in raising funds through equity investments. The issuance of shares by high-quality consumption-linked enterprises will also be encouraged.

In addition, financial institutions will be supported in issuing bonds and asset-backed securities to expand their lending capacity. New financing models will be explored to extend loan maturities for infrastructure gaps, such as elderly-friendly retrofitting and electric vehicle charging stations.

Industry experts noted that, amid rising external uncertainties, the new measures are expected to boost consumption capacity, improve supply-side efficiency, and upgrade basic services. They added that the policies could strengthen the foundations of consumption through entrepreneurial loans and household wealth management, while addressing infrastructure shortcomings -- particularly in county-level logistics and supply chain systems.

Ultimately, the measures are expected to accelerate China’s transition toward a domestic demand-driven growth model, providing new momentum for high-quality development, the experts concluded.

Editor: Emmi Laine