(Yicai Global) Jan. 29 -- China issued new policies for green home appliance subsidies today, and may offer up to CNY700 million (USD104 million) in discounts for 150 million units as it looks to reduce energy consumption and meet more demanding consumer expectations.

The policy will offer subsidies for green and smart home appliances that have obvious benefits on energy conservation, emissions reduction and industrial chain growth, Liu Yunan, an inspector at the National Development and Reform Commission, China's economic planner, said at a press briefing .

Shares in two of China's top appliance manufacturers, Midea Group [SHE:000333] and Gree Electric Appliances [SHE:000651], closed up 2.77 percent and 2 percent on the news.

Right now, Chinese consumers want better products, an executive at retail giant Suning.Com told Yicai Global. They want bigger, clearer televisions and functional smart equipment, like airers that can dry and disinfect clothes, he added.

China is the world's biggest home appliance market in terms of production and sales. Revenue from air-con units, refrigerators, washing machines and flat-panel television displays tallied CNY800 billion from 230 million sales in 2017, but there is still little penetration from high-tech, high-efficiency appliances.

Beijing wants to implement a quality authentication mechanism for high-end green and smart home appliances to help transform the sector and better meet demand for high-quality goods, Liu said, adding that the country will offer rebates for consumers to trade in old electric appliances in order to get more higher-quality products into homes.

Editor: James Boynton