China Unleashes Financial Tools to Boost Domestic Consumption

China has introduced new guidelines aiming to stimulate consumption by leveraging financial instruments. The initiative includes supporting employment and boosting household incomes. It encourages funding for consumer industry companies via the stock market and endorses the issuance of REITs and consumer-focused ETFs.

In a strategic move to invigorate its economy, China released new guidelines on Tuesday to boost domestic consumption through innovative financial measures. This initiative forms a part of wider efforts to drive up the nation's internal demand.

The guidelines, crafted collaboratively by six governmental departments and published by the central bank, focus on aiding eligible companies within the consumer industry to secure financing through stock market avenues and other channels. The move is expected to fortify the consumer industry chain.

Furthermore, China aims to nurture the creation of consumer-centric exchange-traded funds and back qualified infrastructure projects by issuing Real Estate Investment Trusts (REITs), reflecting the broader ambition to underpin economic growth through strategic financial interventions.

(With inputs from agencies.)