China's central bank is set to enhance its financial support to boost domestic consumer spending, with the People's Bank of China (PBOC) and financial regulators rolling out measures to stimulate spending and drive economic growth, a PBOC official said at a press briefing in Beijing on Monday.
A specialized policy document, aimed at expanding consumer spending, will be published to help coordinate financial, fiscal, and industrial policies, and guide financial institutions to meet the different funding needs of entities on both the supply and demand sides of consumption, according to Che Shiyi, head of the PBOC's Credit Market Department.
"We will implement a moderately loose monetary policy to create a favorable financial environment for expanding consumption. In line with the central government's call for a more proactive macroeconomic policy, the policy intensity and timing will be adjusted and optimized based on domestic and international economic and financial conditions, as well as the operation of financial markets," said Che.
"We will coordinate a package of consumer-focused policies to support the improvement of consumer spending and benefit the public. Enhanced inter-departmental collaboration will focus on providing stronger financial support to businesses in key areas such as culture and tourism, elderly care, and sports, promoting the growth and development of related industries and enterprises," he said.
Specialized financial services will be strengthened for consumer infrastructure and commercial circulation systems to enhance the quality and efficiency of consumption supply. The central bank will also coordinate fiscal policies, such as interest subsidies and tax cuts, to increase the supply of high-quality consumer products and services, thereby improving consumer satisfaction.
"We will optimize financial products and services to meet diverse consumer needs. Financial institutions will be guided to develop targeted financial products for emerging consumer models, including trade-ins, smart products, and winter sports," he said.
Special attention will be given to groups such as college graduates, new urban residents, and freelancers, with measures to reduce fees and optimize financial services. Efforts will also be made to improve payment convenience, especially for elderly consumers and foreign visitors, in key areas such as food, accommodation, transportation, and tourism, according to the official.
"We will expand the funding sources of financial institutions to increase the supply of funds in the consumer sector. Financial institutions will be actively supported in issuing financial bonds specifically for the consumer sector," he said.
It will expand the range of over-the-counter bond investment products to provide more channels for residents' property income, which can be used for consumer spending, according to the official.
China to ramp up financial support to boost consumer spending: central bank official
The upcoming World Cup Asian qualifier between China and Australia on March 25 at the Hangzhou Olympic Sports Center Stadium has ignited an economic surge in east China's Hangzhou City, with sold-out tickets, soaring hotel bookings, and specialized fan experiences driving a wave of consumer spending.
Data shows that all 67,000 tickets for the match at the Hangzhou Olympic Sports Center Stadium were sold out within several minutes after going on sale on March 7. Remarkably, around 70 percent of the tickets were purchased by fans from outside the city, underscoring the event's broad appeal.
The ticket revenue for the match is projected to exceed 50 million yuan (approximately 7.2 million U.S. dollars). Beyond that, the game has also driven a surge in flight and hotel bookings in Hangzhou.
According to travel platform Qunar, flight bookings to Hangzhou for March 23 to 25 increased by 1.2 times compared to the previous week. Meanwhile, hotel bookings in the city for March 25 to 27 surged by over 100 percent year on year, data from Ctrip revealed.
Hangzhou has launched exclusive activities for fans of the World Cup Asian qualifiers. In addition to preferential prices, 97 hotels across the city have also launched services such as free midnight snacks and discounted dining options, while restaurants are preparing for a huge influx of diners.
"The volume of business will increase by about 10 times compared to normal, and we will also extend our operating hours to 2 AM on the match day," said Liu Jiahao, a chef at a restaurant in Hangzhou. This football event is part of Hangzhou's broader strategy to leverage sports and entertainment to drive economic growth. The city has previously hosted a series of successful concerts and sporting events that have generated significant foot traffic for surrounding commercial areas.
The city is innovating its consumption patterns by combining sporting events and entertainment to enhance the overall visitor experience. New fan-centric retail offerings have already debuted, including a specialized store at Hangzhou Xiaoshan International Airport's T4 terminal selling merchandise related to the Chinese national football team.
This year, Hangzhou will implement a three-year action plan titled "City of Events, Shopping Paradise," aiming to establish itself as an international sports tourism destination. Experts suggest that enhancing the quantity and quality of events, alongside innovative consumer engagement strategies, will further amplify the economic benefits of hosting major competitions.
"The most significant shift is moving from singular consumption to integrated consumption. By tailoring strategies based on the event, individuals, and groups, and developing specific consumption scenarios, we can achieve a synergistic effect between sporting events and consumer activities," said Wang Wei, an economist at the Zhejiang Provincial Development and Planning Research Institute.
Hangzhou enjoys record ticket sales, booming tourism ahead of World Cup Asian Qualifier
