Explainer | What is actually in China’s new plan to boost consumer spending?

Below we offer a closer look at the key measures listed in the plan.

Which measures are designed to boost demand?

1. Lowering childcare costs. The plan lays out targets to establish a childcare subsidy system and increase the supply of paediatric services. Eligible regions will also be encouraged to provide inclusive childcare institutions with support in finding venues and operational subsidies.

2. Improving support for senior citizens. Private capital will be given a greater role in the provision of elderly care and childcare services. The basic pension for both rural and urban residents will be improved, and individual retirement accounts will be promoted as a “third pillar” of the pension system.

3. Stabilising the stock and property markets. The plan includes multiple measures to stabilise the stock market, including a crackdown on fraud in the capital market and illegal reductions of holdings by shareholders of listed companies. It also aims to build up a market stabilisation mechanism and encourage more long-term capital flows into the market.