State Council Flags Support for “New Consumption,” Reduction in Payment Processing Fees

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China’s top government authority has issued a new directive flagging plans to drive the growth of “new consumption” via a range of measures including reforms to the payments system.

On 21 September the office of the State Council issued the “Opinions Concerning New Operating States and New Models Guiding Accelerated Development of a New Model of Consumption” (关于以新业态新模式引领新型消费加快发展的意见).

The Opinions call for “deepening cooperation between government, banks and enterprises,” and “expanding investment and financial channels in the field of new models of consumption.”

Chinese financial institutions will be encouraged to “actively develop financial products and services for the unique operating features of relevant enterprises in the field of new consumption,” under the preconditions of “risk control and market-based principles.”

The Opinions call for “optimisation of the payments environment for new models of consumption,” and encouraging “banks and other payments and settlement service providers to reduce processing fees, reduce payments costs for vendors and consumers,” and “drive the widespread application of mobile payments in the area of facilitating popular consumption.”

The Chinese government will also “support qualified enterprises in financing via issuance of new stocks, issuance of corporate bonds and listing on the New Third Board,” in order to better “transfer and concentrate their vigour in the field of new model consumption.”

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