The first batch of 81 billion yuan of ultra-long-term special treasury bond funds was issued as soon as possible to support local governments to speed up the launch of old-for-new work in various fields; the Ministry of Commerce and other departments promptly issued detailed implementation rules for renewal and new areas in automobiles, home appliances, mobile phones, home decoration consumer goods and other fields; before the Spring Festival holiday, 31 provinces fully launched the exchange of old-for-new consumer goods this year, achieving policy connection and funding continuation... Since the implementation of the "two new" policies, all localities and departments have actively promoted the implementation of policies.
In order to ensure that the "real money" is implemented, the Ministry of Finance optimizes the allocation of funds, and in accordance with the principle of "incentive compatibility", it will tilt towards regions with good work results in 2024, encourage local governments to implement creatively and amplify the implementation effect. For some areas with large demand for funds and high social attention, further expand the scope of implementation and increase subsidy standards. For example, expand the support scope of equipment update projects to electronic information, production safety, facility agriculture and other fields; expand the subsidy for home appliances from 8 categories to 12 categories; implement new subsidies for purchase of digital products such as mobile phones. At the same time, further strengthen the linkage of fiscal and financial policies and optimize the fund application process.
In Yunnan, since the launch of the old-for-new consumer goods this year on January 21, the local financial department has paid more than 500 million yuan in subsidy funds, driving more than 4.5 billion yuan in social consumption; in Heilongjiang, the financial department on January 23 preallocated the ultra-long-term special treasury bonds preallocated by the state to support the old-for-new consumer goods and 500 million yuan in provincial supporting funds to fully guarantee the subsidy redemption needs during the Spring Festival holiday; in Jiangsu, bank loans related to the equipment update of qualified operating entities The principal amount is based on the central government's interest subsidy of 1.5 percentage points and the additional interest subsidy of ultra-long-term special treasury bond funds, the provincial finance will provide another 1 percentage point interest subsidy through manufacturing loans...
Relevant person in charge of the Sichuan Provincial Department of Finance introduced that on January 27, the "Sichuan Province's 2025 Policies and Measures for Striving for Expansion of Large-scale Equipment Updates and Consumer Goods Trade-in" was issued and implemented, integrating national and provincial, incremental and stock policies into a policy system, and 47 specific measures were issued. Up to now, the first batch of 3.5 billion yuan of ultra-long-term special treasury bond funds have been allocated to 21 cities (prefectures), and 704,000 household appliances traded in the province have been sold for 200,000, driving sales of 2.41 billion yuan, and the policy results have begun to show.
"On the one hand, we accelerate the progress of capital expenditure, cooperate with the industry competent departments to clarify the time limit requirements from the approval of the audit to the allocation of funds to consumers, further optimize the review process, quickly allocate funds, and improve the satisfaction of enterprises and consumers. On the other hand, we strengthen fund tracking and efficiency assessment, strengthen dynamic monitoring of work progress, fund use, and performance goals in budget implementation, and effectively improve the efficiency of capital use. At the same time, we strengthen fund supervision to prevent problems such as fund crowding, misappropriation and fraud in subsidies." A relevant person in charge of the Heilongjiang Provincial Department of Finance said.
Data from the Ministry of Finance shows that during the Spring Festival holiday, the sales volume of digital products such as automobiles, home appliances, and mobile phones in exchange for new products reached 8.6 million units (sets), with sales of more than 31 billion yuan. The sales revenue of home appliances and mobile phones increased significantly by about 166% and 182% year-on-year respectively.
In terms of financial support, in April last year, the People's Bank of China, in conjunction with relevant departments, established re-loans for scientific and technological innovation and technological transformation, with a total scale of 500 billion yuan, of which 400 billion yuan is used to encourage banks to increase credit support for equipment updates in key areas.
"We will continue to do a good job in financial support for large-scale equipment updates, better play the role of cross-departmental working mechanisms, strengthen cooperation with the finance department, further optimize the re-lending process, support banks to improve service efficiency, expand the scale of equipment renewal loans, reduce corporate financing costs, and stimulate business entities to release equipment renewal needs." Peng Lifeng, Director of the Credit Market Department of the People's Bank of China, said.
Commercial banks have launched a number of financial products and preferential activities in a variety of financial products and preferential activities based on consumers' daily consumption and consumer needs, home appliances, and automobiles. Agricultural Bank of China has created the exclusive products of the "Agricultural Bank of China Renewal E-Loan" series, which differentiates the loan amount according to different needs of consumers and provides benefits such as immediate reduction in consumption; Bank of Communications Hainan Branch launched the "old-for-new" credit card consumption reduction activity. After consumers receive the immediate reduction coupon, they will be superimposed on government subsidies. The purchase of home appliances can be up to 2,250 yuan, and the purchase of electronic digital products can be up to 750 yuan; CITIC Bank has carried out the "old-for-new" credit card consumption installment activity in more than 10 cities including Shenzhen and Nanjing, and special subsidies are provided for the configuration of home decoration and home appliances, building materials, 3C digital products, etc.
"The launch of old-for-new related preferential activities is a concrete manifestation of the function of financial services. It not only helps reduce consumers' consumption costs and release consumption potential, but also better expand domestic demand and promote the sustained and stable recovery of the economy." said Lou Feipeng, a researcher at China Postal Savings Bank.
