China to roll out package of polices to spur domestic demand

BEIJING, Jan 9 (Reuters) - ⁠China's cabinet ⁠held ‍a meeting on Friday about implementing a package of fiscal and financial policies to boost ‍domestic demand, including initiatives to spur household consumption, ​state broadcaster CCTV reported.

Policymakers have pledged to step up support ​to ensure the economy gets off to a solid start in 2026.

The cabinet, chaired by Premier Li Qiang, said the government ​will boost household consumption by strengthening loan support for services providers, enhancing interest‑subsidy policies for personal ​consumer loans, and expanding the supply of high‑quality services.

"Implementing a coordinated fiscal–financial ‌policy package to spur domestic demand is an important measure to expand effective demand and ​innovate macro regulation," state television ⁠quoted the cabinet as saying.

Last month, China unveiled an initial 62.5  billion yuan in special ‌treasury bond funds to support its 2026 consumer trade‑in scheme, which offers subsidies for replacing home appliances and new energy ‌vehicles.

The government will guide private capital to participate in efforts ‌to promote consumption and expand investment.

China will roll out interest‑subsidy policies for loans to small firms, establish a special guarantee programme ‍for private investment and create a risk‑sharing mechanism for bonds issued by private ⁠companies.

It will also fine‑tune interest‑subsidy policies for equipment‑upgrade loans to further reduce financing thresholds and costs for enterprises.

(Reporting by Shi Bu, Ethan Wang and Kevin Yao. Editing by Mark Potter, Kirsten Donovan)

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