China's National Financial Regulatory Administration announced on Saturday that consumer finance companies and auto finance enterprises need to step up efforts to support equipment update and consumer goods trade-in.
To be more specific, consumer finance companies should make full use of policies, innovate financial product services, as well as actively support the environment-friendly and quality replacement and upgrading of residents’ durable consumer goods.
While auto finance enterprises ought to strengthen financing support to public transportation, promote the application of new energy vehicles, reduce the down payment for car loans appropriately under the premise of law, compliance and risk control, determine the term of the car loan and line of credit reasonably, lower the threshold for automobile consumption, as well as enrich the supply of automobile finance products.
East China's Zhejiang Province is one of the areas that have started to put efforts in consumer goods trade-in.
Recently, it has rolled out an action plan to further promote trade-in.
It has included old house renovation, with finishing materials, such as facing bricks, flooring and wallboards, enjoy a 20-percent subsidy of the purchase price. The maximum amount of subsidy per person per house is no more than 20,000 yuan (about 2,819 U.S. dollars).
As for furniture, getting rid of the old furniture will not create extra costs if users buy new furnishing. Meanwhile, professional workers will be responsible for picking up the old furniture at no extra cost.
"The general public doesn’t know how to deal with large old furniture. If they need help, they have to pay extra. So, part of the subsidy has been used in this way. Namely, we put ourselves in the shoes of consumers, and allow them to fully enjoy the preferential policies of the government," said Liu Hong, head of a local household supplies company.
Regarding home appliances, apart from refrigerators, washing machines, TVs, air conditioners, computers, water heaters, cookers and kitchen hoods, Zhejiang also provides subsidies for intelligent service robots and smart dishwashers in accordance with local consumers' needs.
"The introduction of these detailed rules is an implementation of the previous comprehensive plan on further promoting trading-in of consumer goods, which not only meets people's needs for home improvement, but also allows the government to provide subsidies in a more precise and effective way," said Zheng Xiaofeng, deputy director of Zhejiang Development and Planning Institute's industrial development research institution.
China steps up efforts in promoting consumer goods trade-in
