Looking Into China’s Latest Economic Support Policies (AI Translation)
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文｜财新周刊 丁锋 王石玉 武晓蒙 全月 吴雨俭
By Caixin Weekly’s Ding Feng, Wang Shiyu, Wu Xiaomeng, Quan Yue, Wu Yujian
同样是在股市开盘之前的上午9点，同样是中国人民银行、国家金融监督管理总局（下称“金监总局”）、证监会“一把手”悉数鱼贯而出，2025年5月7日在国务院新闻办公室举行的“一揽子金融政策支持稳市场稳预期”新闻发布会，吸引了国内外市场的目光。此前，央行、金监总局、证监会“一把手”在2024年9月24日的国新办发布会上，宣布了一系列金融支持经济高质量增长的增量政策。
At 9 a.m., ahead of the stock market’s opening, the heads of the People’s Bank of China, the National Financial Regulatory Administration (NFRA), and the China Securities Regulatory Commission (CSRC) made a coordinated appearance. On May 7, 2025, the trio took to the stage at a State Council Information Office press conference to unveil a “package of financial policies to stabilize markets and expectations,” drawing keen attention from both domestic and international market participants. This event echoed a similar lineup on September 24, 2024, when the central bank, NFRA, and CSRC chiefs announced a series of incremental financial measures to bolster high-quality economic growth.
与半年前相比，今天的外部环境发生急剧变化，美国总统特朗普4月2日宣布所谓“对等关税”后，外部冲击影响加大。即将举行的中美贸易谈判或带来一定转机，但无人幻想还能回到从前。
Compared to six months ago, the external environment has changed dramatically. After U.S. President Donald Trump announced the so-called "reciprocal tariffs" on April 2, the impact of external shocks has intensified. While the upcoming Sino-U.S. trade talks may offer some hope for a breakthrough, no one harbors illusions of returning to the previous status quo.
各方期盼着加强超常规逆周期调节的政策出台。
All parties are eagerly anticipating the introduction of policies to strengthen extraordinary counter-cyclical adjustments.
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- On May 7, 2025, China’s central bank, NFRA, and CSRC announced major financial policies including a 0.5% RRR cut (injecting about 1 trillion yuan liquidity), broad interest rate cuts, and new structural tools to support tech, consumption, real estate, and foreign trade amid U.S. tariff hikes.
- Measures include RMB 500 billion relending for consumer/elderly services, enhanced credit/insurance for exporters, support for tech innovation bonds, and reinforced property market stability.
- China’s stock market saw modest gains; authorities signaled potential for further rate/deficit moves if needed to counter external shocks and weak domestic demand.
At 9 a.m. on May 7, 2025, the leaders of China's main financial regulators—the People’s Bank of China (PBOC), the National Financial Regulatory Administration (NFRA), and the China Securities Regulatory Commission (CSRC)—jointly introduced a comprehensive package of financial policies at a high-profile press conference. The measures aimed to stabilize markets and shore up economic expectations amid increasing global uncertainties, including new U.S. tariffs of up to 245% on Chinese exports announced in April, and the anticipation that Sino-U.S. trade negotiations will not restore prior trade conditions. The new policy package marks an expanded and intensified government response compared to similar incremental actions launched in September 2024, with a clear focus on extraordinary counter-cyclical adjustments. [para. 1][para. 2][para. 3]
PBOC Governor Pan Gongsheng outlined ten new measures, including broad-based monetary easing via interest rate and reserve requirement ratio (RRR) cuts, and targeted tools to support sectors like technological innovation and consumer services. On the same stage, NFRA Chairman Li Yunze unveiled eight additional policies designed to support foreign trade firms—especially those hurt by new U.S. tariffs—stabilize the real estate market, and encourage investment in tech. Wu Qing at the CSRC described initiatives to boost capital markets and attract more medium-to-long-term funds. [para. 3]
These moves are tightly aligned with directives from high-level Communist Party meetings on April 25, which called for timely monetary easing, expanded support for services and elderly care, and measures to stabilize both the real estate and stock markets. The policies combine short-term responses to external shocks and sustained long-term efforts to upgrade China’s economic resilience and growth quality. [para. 4][para. 5]
Key monetary measures include a 0.5 percentage point RRR cut for large and medium banks, expected to inject around one trillion yuan into the financial system, and a temporary RRR reduction for auto finance and leasing companies to zero. Policy rates—including the 7-day reverse repo—were lowered by 0.1 percentage point, while interest rates for structural monetary policy tools and housing provident fund loans were reduced by 0.25 percentage points. Altogether, these measures will save businesses and individuals billions in interest costs, lower commercial banks’ funding costs, and encourage more bank lending to priority sectors. [para. 12][para. 13][para. 14][para. 15][para. 16]
NFRA has expanded financing support especially for SMEs involved in foreign trade, and has promoted risk-sharing via export and domestic trade credit insurance. In the first four months of 2025, short-term export credit insurance rose 15.3% year-on-year, underlining China’s intensified hedging against trade shocks. Local governments such as Yiwu and Shenzhen have introduced targeted export and credit insurance subsidies. [para. 28][para. 29][para. 30][para. 31][para. 32]
The new package intensely spotlights technological innovation, with over 50 mentions of “technology” at the press conference. The government announced expanded use of M&A loans, encouraged banks to create Asset Investment Companies (AICs) for more direct equity investment in tech firms, and launched “technology innovation bonds” to provide fresh fundraising channels. Nearly 100 market institutions are planning to issue over 300 billion yuan of such bonds to support R&D and tech-sector growth. [para. 48][para. 49][para. 50][para. 51][para. 52]
Domestic demand stimulation features heavily in the new measures, including a 500 billion yuan relending facility for consumer services and elderly care, part of efforts to close China’s pronounced gap in service consumption relative to other major economies. The government continues to offer substantial “trade-in” subsidies for consumer goods and stresses expanded credit for small business owners. [para. 69][para. 70][para. 71][para. 72][para. 73]
Real estate stabilization remains a priority: mortgage and policy-based lending rates are cut, new quotas are allocated for loans supporting property development, and mechanisms are strengthened to guarantee project delivery and protect homebuyers’ rights; 5.3 to 6.7 trillion yuan in “whitelist” loans have been approved since September 2024. [para. 82][para. 84][para. 85][para. 86][para. 87][para. 88][para. 89][para. 90]
To stabilize capital markets, state-backed institutional investors have increased ETF holdings, and the central bank has supported stock buybacks and long-term investment by insurance funds. As of Q1 2025, “national team” holdings of listed companies total 4.21 trillion yuan. Regulatory changes aim to encourage insurance funds’ entry into equities, with a long-term investment pilot poised to expand to 222 billion yuan. [para. 101][para. 102][para. 103][para. 104][para. 105][para. 106][para. 114][para. 115]
Overall, the new package is a highly coordinated, multi-faceted effort to buffer China’s economy against both external shocks and internal structural weaknesses.[para. 6][para. 7][para. 8][para. 9][para. 10][para. 11][para. 17][para. 18][para. 19][para. 20][para. 21][para. 22][para. 23][para. 24][para. 25][para. 26][para. 27][para. 33][para. 34][para. 35][para. 36][para. 37][para. 38][para. 39][para. 40][para. 41][para. 42][para. 43][para. 44][para. 45][para. 46][para. 47][para. 53][para. 54][para. 55][para. 56][para. 57][para. 58][para. 59][para. 60][para. 61][para. 62][para. 63][para. 64][para. 65][para. 66][para. 67][para. 68][para. 74][para. 75][para. 76][para. 77][para. 78][para. 79][para. 80][para. 81][para. 91][para. 92][para. 93][para. 94][para. 95][para. 96][para. 97][para. 98][para. 99][para. 100][para. 107][para. 108][para. 109][para. 110][para. 111][para. 112][para. 113][para. 116][para. 117][para. 118][para. 119][para. 120][para. 121][para. 122][para. 123][para. 124][para. 125][para. 126][para. 127][para. 128][para. 129][para. 130][para. 131][para. 132][para. 133][para. 134][para. 135][para. 136][para. 137][para. 138][para. 139][para. 140][para. 141][para. 142][para. 143][para. 144][para. 145][para. 146][para. 147][para. 148][para. 149]
- Export Credit Insurance Company
出口信用保险公司 - According to the article, China Export Credit Insurance Company (“China Eximbank”) plays a crucial role in stabilizing exports by providing export credit insurance. In 2024, its short-term export credit insurance covered over $860 billion, with a record-high guarantee amount of RMB 262.46 billion. The company supports Chinese exporters by insuring against risks like buyer default—demonstrated by a major payout of $15.725 million to Lifefitness in 2024, helping mitigate payment losses.
- China Export & Credit Insurance Corporation (Sinosure)
中国出口信用保险公司 - China Export & Credit Insurance Corporation (Sinosure) is a state-owned policy insurance company providing export credit insurance services. In 2024, Sinosure’s short-term export credit insurance coverage exceeded USD 86 billion, reaching new highs. It played a crucial role in supporting exporters, offering compensation for losses from overseas buyers’ defaults—such as the largest claim of USD 15.7 million paid to Lizuan Sports in 2024.
- Zhejiang Likun Sports Technology Co., Ltd.
浙江力玄运动科技股份有限公司 - Zhejiang Likun Sports Technology Co., Ltd. ("Likun Sports") is mentioned as an export enterprise affected by a North American client's financial difficulties. In 2024, the client was unable to pay owed amounts, leading China Export & Credit Insurance Corporation to compensate Likun Sports with $15.725 million (about RMB 110 million), making it the largest short-term export credit insurance claim nationwide that year.
- PICC Property and Casualty Company Limited
人保财险 - PICC Property and Casualty Company Limited (人保财险) is mentioned in the article as an innovator in domestic trade credit insurance ("内贸险"). In Xiamen, PICC launched a specialized product supporting "little giant" specialized and innovative enterprises, covering all domestic credit sales buyers and transactions within the insurance period, addressing the growing demand for credit insurance from sectors like energy, construction, and manufacturing.
- GF Securities
广发证券 - GF Securities' chief economist, Guo Lei, is cited in the article as noting the possibility of introducing new policy financial instruments to promote consumption and stabilize foreign trade. He suggests these could be led by policy banks, similar to earlier infrastructure-supporting tools, indicating expectations for future pro-consumption and trade policies. No other details about GF Securities are provided in the article.
- Industrial Bank Co., Ltd.
兴业银行 - According to the article, Industrial Bank Co., Ltd. (兴业银行) recently received regulatory approval to establish its own financial asset investment company (AIC), with a registered capital of 10 billion RMB. This marks it as the first joint-stock bank in China (after the big five state-owned banks) to receive such approval, enabling it to increase investments in technology and innovation enterprises through direct equity investment.
- China Merchants Bank
招商银行 - On May 8, China Merchants Bank announced plans to establish a wholly-owned Asset Investment Company (AIC) following new regulatory support. This move allows the bank to increase direct equity investments in technology and innovation-focused enterprises, aligning with recent financial policies to bolster support for science and technology sectors through expanded equity and debt financing channels.
- China CITIC Bank
中信银行 - According to the article, on May 8, 2025, China CITIC Bank announced plans to establish a wholly owned Asset Investment Company (AIC). This move follows regulatory approval, alongside other banks such as Industrial Bank and China Merchants Bank, aiming to enhance equity investment in technology and innovation-driven enterprises in China.
- China Construction Bank
中国建设银行 - The article mentions that, after China’s latest financial policy announcements, Industrial Bank received approval to establish a financial asset investment company (AIC), following the "Big Five" state-owned banks—including China Construction Bank (CCB)—which were the first to set up AICs. These AICs were initially created in 2017, mainly for debt-to-equity swaps, and recently gained approval to expand direct equity investments, including support for tech enterprises.
- Agricultural Bank of China
中国农业银行 - According to the article, Agricultural Bank of China is one of the five major state-owned banks in China. Its financial asset investment company (AIC) was among those approved since 2017. From 2020, major AICs, including Agricultural Bank of China’s, were allowed to conduct direct equity investments in Shanghai, expanding their role beyond debt-to-equity swaps to broader investment activities supporting technological innovation and key sectors.
- Industrial and Commercial Bank of China
中国工商银行 - The article mentions that Industrial and Commercial Bank of China (ICBC) is one of the five major state-owned banks that have established Financial Asset Investment Companies (AIC). These AICs, initially focused on debt-to-equity swaps, are now expanding into direct equity investments in technology firms. This move signals regulatory encouragement for large and medium-sized banks like ICBC to deepen their involvement in supporting technological innovation through equity investments.
- Bank of China
中国银行 - Bank of China is mentioned as one of the five major state-owned banks in China that previously established Asset Investment Companies (AICs), initially focused on debt-to-equity swaps. Recently, regulatory authorities have allowed these AICs to expand into direct equity investment in technology innovation enterprises, as part of broader financial policy efforts to support technology-driven growth and economic transformation.
- Bank of Communications
交通银行 - The article mentions that after the five major state-owned banks, Bank of Communications is the first joint-stock bank to receive approval to establish a financial asset investment company (AIC), with a registered capital of 10 billion yuan. This move allows Bank of Communications to increase its investments in technology innovation enterprises, in line with broader policy efforts to support technological development through expanded financial tools and bank equity investments.
- Huatai Securities
华泰证券 - Huatai Securities is mentioned in the article regarding research on China's real estate market. Their research report notes that lowering the interest rates of certain structural monetary policy tools is expected to reduce funding costs for urban village renovations and stock housing acquisitions, potentially increasing local governments’ willingness to carry out these projects and supporting the stabilization of the real estate market.
- Soochow Securities
东吴证券 - Soochow Securities is mentioned in the article through its chief economist, Zhuo Zhe (芦哲), who analyzes China’s consumption patterns. Zhuo notes that China’s main gap in boosting domestic consumption compared to other major economies lies in the service sector. He suggests that more targeted service consumption subsidies are needed, as current regional subsidies for activities like dining, entertainment, and travel are uneven and have limited overall impact.
- Wanlian Securities
万联证券 - Wanlian Securities is mentioned in the article for its research report, which notes that previously, the reduction in housing provident fund loan interest rates was significantly smaller than the decrease in commercial personal housing loan rates. This led to a narrowing interest rate spread and limited further reductions in commercial mortgage rates. The report provides insights into recent interest rate trends and policy impacts in the real estate sector.
- Everbright Securities
光大证券 - The article mentions that Everbright Securities (光大证券) Chief Economist Gao Ruidong believes that current real estate policies still focus on "stability," consistent with the tone of the April 25 Central Politburo meeting. The report from Everbright Securities expects that the gradual implementation of new policies is likely to consolidate the stabilization trend in the real estate market, with special attention to fiscal policies and local real estate controls.
- China Development Bank
国家开发银行 - The article does not specifically mention China Development Bank. Instead, it focuses on recent financial policies, monetary easing, support for foreign trade, capital markets, property, and technological innovation, led by the People's Bank of China, National Financial Regulatory Administration, and China Securities Regulatory Commission. There is a brief reference to "policy banks" as channels for expansionary fiscal support, but China Development Bank is not discussed directly.
- Central Huijin Asset Management Ltd.
中央汇金资产管理有限责任公司 - Central Huijin Asset Management Ltd. is a state-owned investment company in China, often referred to as a key "national team" institution. It plays a strategic role in stabilizing the capital market, especially during periods of market volatility. Central Huijin frequently increases its holdings in stock index ETFs and, with support from the People’s Bank of China, acts as a quasi-stabilization fund to counteract financial risks and maintain market confidence.
- China Chengtong Holdings Group Ltd.
中国诚通控股集团有限公司 - China Chengtong Holdings Group Ltd. (中国诚通) is a state-owned capital operation platform in China. The article highlights that Chengtong, through its subsidiary Chengtong Financial Holdings, holds significant ETF positions and is an important long-term investor ("national team") in China's stock market. Recently, Chengtong and China Reform Holdings have allocated a combined 1800 billion yuan to increase their holdings in listed company stocks, supporting stock market stability.
- China Reform Holdings Corporation Ltd.
中国国新控股有限责任公司 - China Reform Holdings Corporation Ltd. (中国国新) is a state-owned capital operation platform in China. According to the article, China Reform Holdings, alongside China Chengtong, has been actively involved in stabilizing the stock market by increasing holdings of A-share ETFs using designated funds (1.8 trillion RMB combined). The company is one of the key "national team" institutions supporting capital market stability in China.
- China Securities Finance Corporation Limited
中国证券金融股份有限公司 - China Securities Finance Corporation Limited (CSF) is viewed as part of China's "national team" or quasi-stabilization fund, which plays a key role in stabilizing the stock market. CSF frequently appears as a major shareholder in ETFs and A-share companies, participating in market interventions during volatility, but details about its scale, funding sources, and operations lack transparency and formal definition compared to classic stabilization funds.
- Huatai-PineBridge Fund Management Co., Ltd.
华泰柏瑞基金管理有限公司 - Huatai-PineBridge Fund Management Co., Ltd. is mentioned as the issuer of the Huatai-PineBridge CSI 300 ETF. By the end of 2024, Central Huijin increased its holdings in this ETF by nearly 26 billion units, making Huatai-PineBridge Fund’s ETF holdings account for over 69% of the fund. The company is recognized as an important participant in China's ETF market.
- Chengtong Financial Holding
诚通金控 - Chengtong Financial Holding, a subsidiary of China Chengtong, was mentioned as holding positions exceeding 1 billion yuan in 14 ETFs. It is the largest holder of the Rongtong CSI Chengtong Central SOE Sci-Tech Innovation ETF, with over 350 million yuan of holdings. In April 2024, Chengtong Financial joined other state-owned capital platforms in announcing increased purchases of A-share ETFs to help stabilize China’s stock market.
- Rongtong Fund Management Co., Ltd.
融通基金管理有限公司 - The article mentions Rongtong Fund Management Co., Ltd. as the manager of the Rongtong CSI Chengtong Central SOE Sci-Tech Innovation ETF. China Chengtong is the fund’s largest holder, with holdings exceeding 350 million yuan as of the end of 2024. Rongtong Fund is thus involved in managing ETF products linked to China’s central state-owned enterprises and technology innovation.
- Guoxin Investment
国新投资 - Guoxin Investment, a subsidiary of China Guoxin, is among several state-owned institutional investors referred to as “national team” funds in China’s capital market. As of the end of 2024, Guoxin Investment held seven ETFs, with a total scale of nearly 1.7 billion yuan. In April 2024, China Guoxin increased its ETF holdings to help stabilize the A-share market during episodes of volatility.
- Wind Information Co., Ltd.
Wind资讯 - Wind Information Co., Ltd. (Wind) is a leading Chinese financial data and analytics provider. It supplies comprehensive financial information, data solutions, and software services to financial institutions, corporations, and researchers. Wind's databases cover stocks, bonds, funds, macroeconomics, and more, serving as a core platform for investment research and decision-making in China’s financial markets. The company is widely used by banks, asset managers, securities firms, and academic institutions.
- Ping An Life Insurance Company of China, Ltd.
中国平安人寿保险股份有限公司 - Ping An Life Insurance Company of China, Ltd. is one of the major insurance companies mentioned among those approved for the long-term stock investment pilot program. As of now, Ping An Life, along with other large insurers, has been authorized to participate in initiatives that channel insurance funds into long-term investments in high-quality listed company stocks, supporting stable capital market development in China.
- China Life Insurance Company Limited
中国人寿保险股份有限公司 - China Life Insurance Company Limited is mentioned as one of the eight insurance companies approved for long-term stock investment pilot programs in China. By early 2025, these eight companies, including China Life, had received approval for a combined total of 1.62 trillion yuan in pilot investments, with a further expansion to 2.22 trillion yuan planned. China Life also co-established a 50 billion yuan private securities investment fund with New China Life Insurance in March 2024.
- New China Life Insurance Co., Ltd.
新华保险 - According to the article, New China Life Insurance Co., Ltd. (新华保险) is one of the eight insurance companies approved to participate in the long-term equity investment pilot, allowing insurance funds to invest in quality listed company stocks. In March 2024, New China Life, together with China Life, established a private securities investment fund totaling 50 billion yuan for such investments.
- China Pacific Life Insurance Co., Ltd.
中国太保寿险 - China Pacific Life Insurance Co., Ltd. ("Taiping Life" or CPIC Life) is mentioned as one of eight insurance companies approved to participate in China’s long-term equity investment pilot program for insurance funds, totaling 1.62 trillion RMB. The company is taking part in efforts to channel more insurance capital into China’s stock market as part of broader financial policy initiatives to stabilize and support capital markets.
- Taikang Life Insurance Co., Ltd.
泰康人寿保险股份有限公司 - According to the article, Taikang Life Insurance Co., Ltd. (泰康人寿) is among the eight insurance companies approved for a pilot program allowing long-term investment of insurance funds in high-quality listed company stocks. This initiative is part of efforts to encourage more insurance capital ("long-term money") into the capital market and promote market stability.
- Sunshine Life Insurance Co., Ltd.
阳光人寿保险股份有限公司 - According to the article, Sunshine Life Insurance Co., Ltd. is among the eight insurance companies approved to participate in China's long-term equity investment pilot program for insurance funds. This initiative allows selected insurers, like Sunshine Life, to invest more in quality listed company stocks, supporting broader capital market stability and growth. As of now, the total pilot amount has expanded to 2220 billion yuan.
- PICC Life Insurance Co., Ltd.
中国人民人寿保险股份有限公司 - The article mentions PICC Life Insurance Co., Ltd. (人保寿险) as one of eight insurance companies approved for China’s long-term equity investment pilot, allowing insurance funds to invest in high-quality listed companies' stocks. PICC Life’s participation signals broader insurance industry support for stabilizing and invigorating the Chinese capital market, as part of government efforts to channel more “long money” (long-term investment) into equities.
- Taiping Life Insurance Co., Ltd.
太平人寿保险有限公司 - Taiping Life Insurance Co., Ltd. (Taiping Life) is one of the insurance companies mentioned in the article as being approved for the long-term equity investment pilot, which allows insurance funds to invest in quality listed company stocks. Taiping Life is included among eight major insurers participating in this trial, supporting the stability and development of China's capital markets by allocating more insurance funds to equity investments.
- Huatai-PineBridge CSI 300 ETF
华泰柏瑞沪深300ETF - According to the article, Huatai-PineBridge CSI 300 ETF saw significant increases in holdings by "national team" investors such as Central Huijin, which, by the end of 2024, raised its holdings by nearly 26 billion units, making it hold over 69% of the ETF. This highlights the ETF's role as a major vehicle for large-scale state-backed interventions to stabilize China's equity market.
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