Eight Departments Issue Guidance on Financial Support for Services Sector

Key points

• Eight departments—PBOC, financial regulator, CSRC, NDRC, MIIT, MOF, MOFCOM and the Ministry of Culture and Tourism—issued guidance on financial support for upgrading the services sector.
• The guidance proposes 19 measures covering institutional capability, support for producer and consumer services, and strengthening financial services.
• It calls for shifting away from asset-heavy, collateral-heavy lending to solve financing difficulties for asset-light firms.
• It calls for improving financial services for consumer services including accommodation, dining, resident services, elderly and childcare care, culture, sports and tourism.
• It explicitly supports financing for culture and tourism infrastructure, industrial heritage revitalization and community sports facilities.
• It proposes national banks select 3-5 priority directions and local banks focus on 1-2 industries to develop region-specific financial products.