China's Financial Regulator Urges Increased Support for Consumption as CSI 300 Index Surges Amid 5% Growth Target Set by NPC

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Updated Mar 14, 2025, 09:27 AM

China's National Financial Regulatory Administration (NFRA) has issued directives to financial institutions to enhance support for consumption, aiming to stimulate economic growth. The regulator has promised to relax consumer credit quotas and loan terms, and encouraged banks to provide more personal consumption loans while managing risks. The NFRA's statement also emphasized the need for financial institutions to increase credit supply to consumer service industries such as wholesale and retail, accommodation and catering, cultural and tourism, education, health, and elderly care. This move is part of a broader strategy to boost domestic consumption, which has been identified as a top priority for 2025. In response to these developments, Chinese stocks surged, with the CSI 300 Index reaching its highest level this year. Consumer shares led the gains, driven by expectations of further policy support. A press conference is scheduled for Monday, where officials from various government bodies will discuss measures to enhance consumption. The CSI 300 Index jumped as much as 2.6% to its highest level this year, with consumer staples surging more than 5%. Liquor makers Kweichow Moutai and Wuliangye Yibin each jumped by more than 5%, while stocks related to child birth such as Beingmate Co. and Shanghai Aiyingshi Co. surged by the 10% daily limit following local government childcare subsidies. The push for increased consumer spending comes amid efforts to address economic imbalances and counteract deflationary pressures. Beijing's commitment to boosting consumption is seen as a critical component of its strategy to maintain economic growth amidst global trade tensions. This year's economic growth target of about 5% was set at the National People's Congress (NPC), reflecting renewed optimism over policy stimulus. Investors are also watching for potential further support from Chinese authorities in case of a market pullback, which could establish the notion of a 'Xi put' among investors.

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#China #National Financial Regulatory Administration #NFRA #Chinese #CSI 300 Index #Kweichow Moutai #Wuliangye Yibin #Beijing #NPC #Xi

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Sources

bloomberg.com(5)independent.co.uk(2)reuters.com(2)jp.reuters.com(2)

CGTN

@CGTNOfficial

China expands financial policies to support economic growth, risk prevention, cross-border capital management https://t.co/KITG8Peay2

Investing.com

@Investingcom

*CHINESE SHARES SURGE ON HOPES FOR RRR CUT, POLICIES TO BOOST CONSUMPTION – WSJ 🇨🇳🇨🇳 https://t.co/X1CPT8oiiT

Michael Pettis

@michaelxpettis

FT: " Chinese stocks jumped on Friday after Beijing promised new measures to help consumers, pushing the country’s main stock index into positive territory for the year. Chinese authorities announced that they would hold a press conference on “boosting consumption” on Monday."…