Boosting spending appetites tops agenda

Expanded bond issuances, enhanced trade-in incentives key to consumption

China has largely scaled up its fiscal firepower toward consumption-boosting initiatives — a top priority on the country's policy agenda for the year ahead — in order to offset sluggish homebuying appetites and possible shocks to overseas demand, analysts said.

Along with a consumer goods trade-in program, policymakers will also increase fiscal spending on public services to alleviate financial burdens on households and empower them with greater purchasing power, thus creating necessary conditions for consumption-led growth, they added.

China announced last week in its Government Work Report that it would double ultra-long term special treasury bonds earmarked for its consumer goods trade-in program to 300 billion yuan ($41.39 billion) this year, which was within market expectations.