Key facts
- China has expanded a government-backed interest subsidy program for consumer and corporate loans.
- The program's scope for eligible credit has been broadened, and caps have been raised.
- The adjustments are effective August 1.
- The initiative is supported by a 100-billion-yuan central government budget.
- The aim is to stimulate domestic demand by leveraging bank lending.
China has expanded a government-backed interest subsidy program for consumer and corporate loans, broadening the scope of eligible credit and raising caps to stimulate domestic demand. The adjustment, effective August 1, is part of a broader initiative backed by a 100-billion-yuan central government budget to leverage trillions of yuan in bank lending.