China's MOF extends personal consumption loan interest subsidies until the end of 2026
China's extension of personal consumption loan interest subsidies until 2026, including notable expansions to credit card and tech re-lending, signals a strong commitment to fostering consumer spending and supporting targeted sectors like NEVs and AI.
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China's MOF extends personal consumption loan interest subsidies until the end of 2026
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- Expands interest subsidies to credit card instalments and sets the rate at 1%.
- Extends service sector loan interest subsidies to December 31st 2026.
- To offer 1.5% interest subsidy for equipment renewal loans.
- Expands the interest subsidies to tech re-lending, with the policy to run until the end of 2026.
- The central government is to bear 90% of interest subsidies, while provincial governments bear 10%.
- To provide 1.5% annual interest subsidy for SME private firm loans through 2026.
- To give support to target NEVs, industrial machinery, pharmaceuticals and emerging fields, including AI.
- To inject CNY 5bln into the government guarantee fund.
This move is likely aimed at stimulating domestic demand amid economic pressures, with substantial government support indicating a proactive approach to bolster growth. As the government shoulders a significant portion of these subsidies, expect implications for risk assets and longer-term growth sentiment in the region.
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