China Coordinates Fiscal and Financial Tools to Drive Domestic Demand

Xinhua News Agency reported that China's Ministry of Finance, the People's Bank of China, and the National Financial Regulatory Administration launched a coordinated policy package to expand domestic demand. The arrangement established six policy tools covering loan interest subsidies, special guarantees, and risk-sharing mechanisms for investments, alongside interest subsidies for service businesses and personal consumer loans. Starting August 1, the three authorities upgraded the measures by broadening interest subsidies for micro, small, and medium-sized enterprises to include newly issued working capital loans, incorporating all credit card installments into personal consumer loan subsidies, and raising subsidy caps across supported categories. In Hunan province, the finance department coordinated with local financial regulatory branches, thirteen provincial departments, twenty-eight banking financial institutions, and provincial guaranty entities to build a collaborative working structure led by finance authorities. Sichuan established a coordinated mechanism across provincial, municipal, and county levels with regular joint consultations, bundling central interest subsidies with provincial financing guarantee and risk compensation policies to amplify overall policy efficacy.

Hunan Airlines applied for equipment update subsidized loans to access cheaper credit and upgrade equipment with intelligent tools, lifting its flight regularity rate to 93.6% during January through August 2026 to rank second among 41 airlines.