BANGKOK (AP) – China ordered banks and other financial institutions to encourage more consumer financing and use credit cards as part of a campaign to consume more.
On Friday, the financial regulator of the country is part of the last encouragement of the ruling communist party to build more confidence among consumers who decide to save and not consume, concerned with jobs and prospects for the economy.
It was said that banks should borrow more and also find ways to help borrowers who encounter difficulties. Share prices in China have increased after the National Financial Regulation Commission.
Officials should hold briefing on Monday to increase their consumption and investment, factors that are considered key to maintaining the economy on the trail after the failure of the Coid-19 pandemia, when millions of people lost their jobs and many companies stopped with work.
The Chinese economy, the second largest world, has been growing around 5% of pace lately, according to official statistics. But worries about jobs and burden of health care and education left many Chinese, not wanting to spend a lot, gambling a large driver of business activities.
The long -lasting decline in real estate markets triggered by government efforts to overcome in the excessive borrowing of real estate developers have also been weighed to the mood of consumers, leaving many families feel worse than in the past.
Last year, an increase in export helped to compensate for the permanent weakness of domestic demand, which is stimulated by consumption and investment. However, US President Donald Trump’s orders sharply raise the heading of Chinese goods in the coming months to export a recess in the coming months, increasing the risk of many types of businesses.
In addition to expanding the use of consumer loan, the government consumes tens of billions of dollars on cars and devices programs that are intended to encourage energy -efficient products, but also to absorb excess supplies due to poor demand.
The level of consumer financing and other personal borrowing in China was usually much lower than in the USA to many other countries, although it has increased in recent years. Almost nine of the 10 Chinese families have their homes, while less than half of the homeowners have a mortgage.
The use of cash and internet applications and other forms of digital payments are more common than the use of credit cards.
