Policies boost consumer demand as bank steps in

This year, China has rolled out targeted policies to invigorate its consumer market. These initiatives include refinancing support for elderly care services, interest subsidy programs for personal consumer loans and loans to service industry entities, as well as incentives for service consumption.

Complementing these measures, the country has also stepped up efforts to promote large-scale equipment upgrades and the trade-in of consumer goods, injecting robust momentum into the recovery and growth of the consumer sector.

In response to the national strategy, the Bank of China has actively supported these initiatives through policy implementation, scenario-based innovation, and product optimization, refining measures in such areas as cultural tourism consumption, daily livelihood services, and cross-border financial services to ensure that policy benefits reach market entities and individual consumers.

On Aug 12, for example, the Chinese government unveiled two financial interest subsidy programs focusing on personal consumption and service industry entities. BOC moved swiftly to align with these policies by administering interest subsidies for eligible personal consumer loans from Sept 1.

Also, the bank has advanced interest subsidies for loans to service industry operators, optimizing and streamlining application processes for eight sectors including catering, accommodation, elderly care, housekeeping, cultural entertainment, and sports.

Prior to the rollout of these national subsidy policies, Sichuan province took the lead by launching interest subsidies for personal consumption loans in 2023, covering offline financing for car purchases, electronic products, home renovations, and durable goods like furniture.

BOC's Sichuan branch simplified the financial subsidy application procedures, integrated policy promotions into customer marketing efforts to boost participation, and guided eligible individuals through claiming benefits. By the end of July, the branch had helped customers obtain more than 2.8 million yuan ($392,532) in interest subsidies.

"As a major State-owned bank, we are committed to ensuring national policy benefits reach consumers and service industry entities efficiently and effectively through scenario-tailored product design, dynamic risk pricing models, and ecosystem collaboration," said a representative from the branch.

Aligning with the national drive to promote large-scale equipment upgrades and consumer goods trade-ins, BOC has concentrated on automobiles, home appliances, and home renovations. It has developed an integrated "policy + finance + scenario "model to turn policy advantages into real consumer demand.

For instance, in terms of new energy vehicles, the bank has established strategic partnerships with 17 leading automakers including Tesla, Li Auto, and BYD, to offer installment discounts such as reduced interest rates and flexible repayment terms.

The impact is notable. By the end of May, BOC's Hebei branch had issued 1.1 billion yuan in auto installment interest subsidy loans, saving consumers over 40 million yuan while advancing China's green transportation goals.

Leveraging nationwide cultural and tourism consumption promotion campaigns, BOC has integrated global service resources and invested over 100 million yuan in dedicated subsidies. It has built a comprehensive cultural and tourism financial service system that covers the entire industry chain, unleashing potential in the sector and supporting its high-quality development.

In the dining category, the bank has collaborated with intangible cultural heritage food vendors, time-honored brands, and chain restaurants to launch discount activities. A standout example is BOC's Shaanxi branch, which has run a "50 percent off Thursdays" campaign on Alipay. This initiative has driven over 30,000 transactions in key dining areas of Xi'an, the provincial capital, allowing consumers to savor local delicacies at lower costs and promoting the local food culture.

Accommodation, a cornerstone of cultural and tourism consumption, has also received robust support. BOC has partnered with major hotel groups to offer room discounts, ranging from luxury to budget options, catering to diverse traveler needs.

For smaller operators like homestays, BOC has tailored fast-track financing, with its Fujian branch providing loan disbursement within a maximum of three working days. To date, the branch has issued over 88 million yuan in loans to 119 homestays in Pingtan, a coastal tourist hub, supporting their facility upgrades and capacity expansion.

Additionally, BOC has strengthened collaboration with cultural and tourism departments across China, incorporating scenic spot tickets, special cultural products, and merchant discounts into its mobile banking platform.

In Shaanxi, its branch has provided over 3 billion yuan in credit to iconic cultural and tourism projects, such as the Huaqing Palace Heritage Site, the Grand Tang Mall, and the Huashan Mountain scenic area. In Fujian, the branch has issued a 210 million yuan loan to the Longyan Honggutian Education and Training Center to boost the development of Red tourism.

In the shopping sector, BOC has joined forces with retailers like China Duty Free Group and major outlet malls to launch attractive discount activities. During this year's China International Consumer Products Expo, BOC's Hainan branch introduced an "immediate tax refund upon purchase" service for overseas tourists, simplifying the tax refund process and greatly enhancing the cross-border shopping experience in the province.

In September, at the China International Fair for Trade in Services, BOC launched a cross-regional recognition program for its "immediate tax refund upon purchase "service. This new mechanism enables overseas tourists to complete tax refund transactions in one city and exit China through a different port.

The bank also unveiled its "Easy Tax Refund" system for departure tax refunds, integrating online applications, real-time verification, and fast disbursement to streamline the process further.

Building on earlier cross-regional recognition efforts in the Beijing-Tianjin and Sichuan-Shaanxi regions, BOC has developed a nationwide systematic plan this year to accelerate innovation in this service.

This plan aligns with the Ministry of Commerce's "Shop in China" campaign, aiming to position China as a global shopping destination and unlock more cross-border consumption potential.

BOC's leadership in departure tax refund services dates back to 2015, when it became China's first bank to obtain departure tax refund agency qualification and process the country's first official tax refund transaction.

Since then, it has expanded its network of tax refund merchants, promoted policies to both businesses and international tourists, and enhanced multilingual customer support. Today, BOC handles departure tax refund services in 16 provinces and cities, including Beijing, Shanghai, and Sichuan, covering nearly half of all regions in China with such services.

In terms of promoting sports consumption, BOC has long been providing financial support for building a leading sports nation through comprehensive services. This commitment aligns with the State Council's directives to accelerate the development of the sports industry and promote sports consumption.

On Nov 2, the 2025 Bank of China Beijing Marathon will take place. To facilitate the participation of international runners, BOC has designated its official English website and BOC Compass, an innovative application designed specifically for foreigners visiting China, as the official registration platforms.

By leveraging its extensive global network spanning 64 countries and regions, BOC actively promotes the marathon and supports international participants. This initiative not only underscores BOC's global reach, but also highlights and shares the charm of Chinese sports culture with the world.