Interest subsidy plan to spur spending

China will offer a new loan interest subsidy for businesses in eight eligible categories of the service sector, which officials and analysts said is an innovative step to enhance service offerings and spur spending appetites that will help the country meet its annual growth targets.

"With an interest subsidy ratio of 1 percent, every 1 yuan (14 cents) in subsidy could potentially catalyze 100 yuan in loans for market players to boost the supply of services in the consumption sector," Liao Min, vice-minister of finance, said at a news conference on Wednesday.

A day ahead of the conference, the implementation plan for the new policy, targeting businesses in catering and accommodation, healthcare, elderly care, child care, housekeeping, culture and entertainment, tourism and sports, was unveiled.