Lan Fo'an: 100 billion yuan in fiscal and financial coordination special funds to support benefiting trillion-level credit demand

WealthCoffee · 2026-03-07T09:24:16+00:00

In 2026, China will implement proactive fiscal policies, launching a 100 billion yuan fiscal and financial coordination plan to promote domestic demand. The goal is to boost consumption and private investment, address the issue of "strong supply but weak demand," and achieve a greater economic stimulation effect.

WealthCoffee

2026-03-07 09:24:16

Abstract generation in progress

Caixin 2026 will continue to implement more proactive fiscal policies, with a major feature being enhanced policy coordination. For the first time, a package of policy tools totaling 100 billion yuan will be introduced to promote domestic demand through fiscal and financial collaboration. On March 6, Minister of Finance Lan Fuan stated that this package combines tools such as loan interest subsidies, financing guarantees, and risk compensation, along with a 250 billion yuan policy for old-for-new consumer goods, which is more vigorous than last year. Preliminary estimates suggest that the 100 billion yuan in fiscal funds can support over one trillion yuan in credit, achieving a “small investment with a big effect.”

Lan Fuan said at the economic-themed press conference that China’s overall economy is shifting towards new and better development, but the contradiction of “strong supply but weak demand” remains prominent. Consumer vitality is insufficient, and private investment growth is relatively weak. To address this issue, the central government has allocated 100 billion yuan in 2026 to launch a comprehensive package of fiscal and financial policies to promote domestic demand.

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