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Emma Ma

Policymakers from China’s top economic planner and the nation’s finance ministry have accelerated the roll‑out of supporting measures while ramping up backing for private‑sector entities, after weaker-than-expected economic data highlighted the urgency for further policy stimulus.
On Friday, China’s Ministry of Finance (MoF) unveiled new measures aimed at boosting spending on big-ticket items such as vehicles and home renovations, with more action pledged for later in the year.
The move came a day after the National Development and Reform Commission (NDRC) hosted a symposium to solicit feedback from leading private companies on ways to improve investment.
According to the announcement from the finance ministry, effective this month, new credit card transaction payments for cars and home renovations qualify for a one‑percentage‑point cut on annual interest costs.
Vice-minister of Finance Liao Min said the move aimed to better align policy with current consumer spending patterns.
The ministry also raised the maximum interest-subsidy payout for qualifying consumer loans, lifting the per-individual cap from 3,000 yuan to 5,000 yuan (US$743). It also broadened the coverage of the loan interest-subsidy policy for micro, small and medium-sized enterprises to include working capital loans.
However, analysts said the moves were incremental and would not jump-start sluggish growth. Shao Yu, director of the Shanghai Institution for Finance and Development, said the interest subsidies alone were not going to be effective.
“To shore up the economy, the MoF should accelerate and scale up fiscal spending, especially on weak links such as infrastructure and the property sector,” Shao said.

Liao said that authorities were also developing new policy tools, tailored to current economic conditions, that would be rolled out in the second half of the year.
The ministry would also deepen coordination with the People’s Bank of China, and hoped the measures would “bring tangible benefits to businesses and households”, Liao said during a press conference.
The domestic economy has been sluggish since April. China reported 4.3 per cent gross domestic product growth in the second quarter, the slowest quarterly growth rate since the end of 2022, according to the National Bureau of Statistics (NBS). Retail sales, a major gauge of consumer spending, grew by only 0.6 per cent year on year last month.
On Monday, Premier Li Qiang acknowledged at a meeting of the State Council that weak domestic demand remained a challenge, with strains mounting across some industries. He promised to roll out practical measures to lift consumption, employment and household income.
Song Xuetao, chief economist at Shanghai-based Sinolink Securities, said references to “new-policy tools” have featured more prominently in top-level speeches, as official wording has shifted from keeping policy options in reserve to drawing them up and rolling out fresh measures.
Song said the third quarter was a momentum‑building phase and that additional policy measures could be rolled out in October.
Authorities were also studying the feasibility of potential mortgage‑interest subsidies, according to sources from two Chinese state-owned banks, who declined to be named as they were not authorised to speak publicly on the matter.
Despite 2026 marking the first year of China’s 15th five-year plan, which calls for the roll-out of new infrastructure projects to drive national economic growth, the investment outlook remains sluggish, weighed down by a prolonged property downturn.
According to the NBS, overall fixed-asset investments – covering major areas such as infrastructure, manufacturing and property construction – fell 6.7 per cent year on year in the January-July period.

The NDRC symposium on Thursday included representatives from five firms in sectors such as electrical equipment, pharmaceuticals, consumer services, smart terminals, textiles, metallurgy and chemicals.
Company executives laid out “developments across their respective sectors, the investment outlook as well as difficulties and challenges they are facing”, according to a NDRC statement. The executives resolved to “double down” on their core businesses, ramp up investment, pursue technological innovation and create more jobs.
Since 2023, the NDRC has set up a mechanism for regular communications with private-sector enterprises.
“At present, due to the combined impact of internal and external factors, difficulties are mounting for enterprises in some sectors,” NDRC head Zheng Shanjie told the symposium. “Even so, China’s economy has consistently advanced by surmounting challenges.”
Meanwhile, on Wednesday, the NDRC convened an inter‑ministerial coordination meeting to push ahead with the “six networks” – a broad infrastructure initiative covering water, power, computing, next-generation telecommunications, underground utilities and logistics networks.
Based on NDRC’s preliminary estimates, investment value across the combined projects was projected to reach 7 trillion yuan this year.
On Friday, China’s State Council specifically addressed the importance of “building the next-generation communications networks”, in an executive meeting chaired by Premier Li Qiang.
The government would “coordinate the development of basic, space, international and integrated networks” to “enhance the competitive edge of China’s information and communications industry”, according to a report by state broadcaster China Central Television.
Meanwhile, officials at the cabinet meeting also touched on other economic issues, including the need to effectively clear overdue payments owed to enterprises.
Additional reporting by Ji Siqi and Coco Feng


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China rolls out credit subsidies for cars, home renovations to boost weak economy, but some analysts warn the measures fall short


China rolls out credit subsidies for cars, home renovations to boost weak economy, but some analysts warn the measures fall short.


China unveils targeted measures to aid slowing economy amid louder calls for policy support

.css-1c6uqr6{color:inherit;font-weight:inherit;font-size:inherit;font-family:inherit;line-height:inherit;overflow-wrap:break-word;}China rolls out credit subsidies for cars, home renovations to boost weak economy, but some analysts warn the measures fall short

China rolls out credit subsidies for cars, home renovations to boost weak economy, but some analysts warn the measures fall short