China Allows Special Treasury Bonds To Support Consumption

China has expanded the scope of ultra long-term special treasury bonds to promote equipment upgrades and trade-in of consumer goods to further boost consumption, Shanghai Securities News has reported following a State Council executive meeting. Consumption will remain the largest contributor and driving force for economic growth, said Lian Ping, chairman at the China Chief Economist Forum. Central and local governments should increase subsidies for the trade-in of durable consumer goods, and cooperate with banks to boost consumer loans to form policy synergies, said Wang Qing, analyst at Golden Credit Rating.