China’s Ministry of Finance: The effects of a package of policies are gradually emerging

China News Service, Beijing, October 23 (Reporter Zhao Jianhua) At the beginning of this year, China announced a package of fiscal and financial policies to promote domestic demand (hereinafter referred to as the package of policies); in August, the package of policies was expanded and intensified to improve effectiveness. Li Nan, deputy director of the Financial Department of the Ministry of Finance, said in Beijing on October 23 that judging from the implementation, the credit extension supported by the package of policies has achieved growth against the trend, driving more social resources to flow to key areas of expanding domestic demand, and the policy effects have gradually emerged.

At a press conference held in Beijing that day, Li Nan introduced that in the first three quarters, policies such as loan discounts for small, medium and micro enterprises, equipment renewal loan discounts, service industry business entity loan discounts, personal consumption loan discounts and private investment special guarantee plans supported more than 28 trillion yuan (RMB, the same below) of new credit in related fields, a year-on-year increase of 3.1%; cumulatively benefiting 8.36 million companies and 147 million residents.

The scope of benefits of the package of policies has been steadily expanded, and support has been continuously increased. Li Nan said that taking loan interest discounts for small, medium and micro enterprises as an example, working capital loans have been included in the scope of support since August, and the policy effects have been accelerated. Within two months, more than 1.8 trillion yuan in new working capital loans have been supported, benefiting more than 500,000 small, medium and micro enterprises, providing support for stabilizing operations and jobs.

A package of policies coordinates the use of loan interest discounts, financing guarantees, risk compensation and other tools to not only lower financing thresholds but also reduce financing costs and make targeted efforts. Li Nan said that in the first three quarters, approximately 8.8 trillion yuan of new loans were issued to support the fields of catering, accommodation, health care, culture, tourism, sports, and retail services; it has helped more than 90,000 small, medium and micro private enterprises lower their financing thresholds.

The comprehensive effectiveness of the policy package continues to be released. In the first three quarters, the cumulative benefits to private investment and household consumption exceeded 2 trillion yuan. Li Nan introduced that on the investment side, it not only promotes the quality improvement and transformation of traditional fields such as transportation, water conservancy, and agriculture, but also assists the expansion and upgrading of emerging industries such as high-end equipment, biomedicine, and artificial intelligence. On the consumer side, various consumption scenarios are embedded to enrich the supply of high-quality services, reduce residents' consumption burden, and form a synergistic situation of "state discount interest, financial support, and merchant discounts".