China’s bank and insurance regulator issued a statement Tuesday stating that it will increase financial support for small and privately owned businesses in the tourism and catering sectors, which were hard hit by the COVID-19 outbreak.
The most severe impact of China’s antivirus restrictions on China was felt by the contact-intensive services industry.
People flocked to destinations on Tuesday as China announced that it would no longer require quarantine for all inbound travelers starting Jan. 8.
The statement stated that “The recovery and expansion consumption will be a priority,” China Banking and Insurance Regulatory Commissions (CBIRC).
CBIRC stated that big-ticket purchases such as green appliances and new energy vehicles will be encouraged.
The regulator stated that China would also increase financial support for private investments and private companies.
The November 5.9% drop in retail sales was due to broad-based weakness within the services sector. This was the largest contraction since May when Shanghai’s commercial hub was locked down.
Following the lifting of strict COVID restrictions, and the subsequent rise in infections, policymakers are planning to increase domestic consumption and invest.
The CBIRC made a commitment to meet reasonable financing requirements and improve the balance sheets of leading developers amid prolonged weakness in the sector.
According to the CBIRC Statement, the regulator will take proactive action to address credit quality risks and encourage banks to strengthen the sale of non-performing loans.