The People's Bank of China will set up 500 billion yuan (293.173 billion ringgit) in service consumption and pension refinancing to support the consumer market.
On the 7th, Pan Gongsheng, Governor of the People's Bank of China, announced at a press conference held by the State Council Information Office that service consumption and pension refinancing would be established to guide commercial banks to increase credit support for service consumption and pension, and to increase low-cost funding support for key areas of consumption.
Pan Gongsheng also said that two monetary policy tools supporting the capital market would be optimized, combining the 500 billion yuan securities, fund, and insurance company swap facility and the 300 billion yuan (175.904 billion ringgit) stock repurchase refinancing facility into a total amount of 800 billion yuan (469.077 billion ringgit).
Pan Gongsheng said that the refinancing limit for technological innovation and technological transformation will be increased by 300 billion yuan, from the current 500 billion yuan to 800 billion yuan, to continuously support the implementation of the 'two new' policy.
He also announced an increase of 300 billion yuan in refinancing limits for supporting agriculture and small businesses, forming a synergistic effect with the policy of lowering related tool rates to support banks in expanding loan issuance to agriculture-related, small, and private enterprises.