Government Policy & Economic Impact - China's Ministry of Finance is implementing interest subsidies for personal consumption loans and loans to service sector businesses [2] - The goal is to lower borrowing costs for residents and businesses, stimulate consumption, and improve the economic cycle [2] - A 1% interest subsidy could potentially leverage 100 times the loan amount for resident consumption or service sector supply, implying a leverage ratio of 100:1 [1] Fiscal & Monetary Coordination - The interest subsidy program represents a coordinated effort between fiscal and monetary policy [2]

Core Viewpoint - The People's Bank of China and the China Securities Regulatory Commission have announced that local governments may establish risk compensation funds or implement other preferential policies to support technology innovation bonds through interest subsidies and government financing guarantees [1] Group 1 - Local governments are encouraged to leverage their financial resources to support technology innovation bonds [1] - The measures include providing interest subsidies and government financing guarantees [1]