FX.co ★ China Unveils Financial Measures to Boost Consumption and Income

China has unveiled a set of directives aimed at boosting consumption through financial instruments, with the larger goals of supporting employment, increasing household income, and invigorating the economy. These guidelines, collaboratively crafted by six government bodies and disseminated by the central bank, advocate for aiding eligible consumer-sector enterprises in capital acquisition via avenues such as IPOs and bonds. The plan urges financial institutions to enhance their services, innovate credit offerings, and manage risks effectively to cater to varied consumer financing needs. The central bank has committed to "guiding financial institutions" to bolster services from both the supply and demand perspectives, utilizing tools like reserve requirements, relending, rediscounting, and open market operations to maintain liquidity and reduce financing expenses. Additionally, the guidelines promote the introduction of consumer-focused ETFs and advocate for REITs in qualified infrastructure projects. Reinforcing employment and boosting incomes to revive consumer confidence remains a primary objective.