The country’s banking and insurance regulator said in a statement on Tuesday that China will increase financial help to small and private firms in the catering and tourism sectors that were severely affected by the COVID-19 epidemic (Dec 27).
The contact-intensive services industry was hardest hit by China’s anti-virus restrictions, which forced the closure of several eateries and limited tourist visitation.
Following the National Health Commission’s announcement on Monday that China would no longer require inbound travellers to undergo quarantine beginning on January 8, some people flocked to travel websites on Tuesday in anticipation of the borders reopening.
According to a statement from the China Banking and Insurance Regulatory Commission (CBIRC), “the recovery and expansion of consumption would be a priority.”
According to CBIRC, purchasing expensive things like new energy vehicles and eco-friendly home appliances would be promoted.
According to the regulator, China would also increase financial support for private investments and businesses.
The services sector had widespread weakness in November, which led to a 5.9% decline in retail sales, a major indicator of consumer spending. This was the largest decline since May, when Shanghai’s financial centre was shut down.
Following the easing of harsh COVID-related restrictions and the ensuing rise in infections, policymakers have outlined initiatives to increase local consumption and investment.
The CBIRC promised to meet reasonable financing needs and strengthen the balance sheets of top developers in the face of ongoing downturn in the real estate market.
According to the CBIRC statement, the regulator would also aggressively address the risks of a decline in credit asset quality and will encourage banks to strengthen the disposition of non-performing loans.
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