September 12, 2023
Banking International

China Banks Offer Cheap Consumer Loans as Xi Urges More Spending

Chinese banks are touting a wide variety of retail lending products as authorities need a pickup in consumer spending to create a more solid foundation for the world’s second largest economy.

Lenders including Bank Of China and china construction bank corp are offering preferential interest rates and incentives such as gift cards on e-commerce platforms to lure customers to their retail loan offerings.

While banks typically front-load their credit issuance early in the year, the latest lending push comes as Beijing exited its stringent Covid Zero policy that’s bruised businesses and dragged economic growth down. Chinese President Xi Jinping last week called for expanding consumer demand order to realize a virtuous economic cycle.

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