BEIJING (Reuters) – China will step up its financial support for catering and tourism businesses hit hard by the COVID-19 outbreak, banking and insurance regulators said on Tuesday.
The service sector has been the hardest hit by the health restrictions imposed by Beijing, which have led to the closure of many restaurants.
“The recovery and expansion of consumption will be a priority,” the China Banking and Insurance Regulatory Commission (CBIRC) said in a statement.
The purchase of expensive goods like new energy vehicles (electric and plug-in hybrid) will be encouraged, the CBIRC said.
China will also increase its support for investment and private enterprises.
Retail sales fell 5.9% in November, the biggest drop since May, when metropolitan Shanghai was under lockdown.
With the ongoing difficulties in the real estate sector, the CBIRC is committed to meeting reasonable financing needs and improving the balance sheets of the main developers.
The regulator will also proactively respond to risks of deterioration in the quality of credit assets and encourage banks to strengthen the sale of non-performing loans.
(Ellen Zhang and Meg Shen, French version Laetitia Volga, editing by Kate Entringer)
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