Core Insights - The "National Subsidy" initiative launched during this year's "Double 11" shopping festival aims to boost consumer spending through financial incentives, allowing consumers to enjoy interest-free installment payments on selected products [1][6] - This initiative represents a collaboration between government fiscal policies, financial tools, and commercial entities to stimulate consumption, creating a win-win situation for consumers, merchants, and policymakers [1][5] Group 1: Policy Implementation - The "National Subsidy" program was implemented following the issuance of the "Personal Consumption Loan Fiscal Subsidy Policy Implementation Plan" by the Ministry of Finance, the People's Bank of China, and the financial regulatory authority [1][6] - The program allows consumers to purchase products marked with "National Subsidy" and enjoy interest-free installment payments through platforms like Taobao and Tmall, enhancing the shopping experience [2][3] Group 2: Consumer Benefits - Consumers can access significant discounts; for example, a Haier range hood originally priced at 2299 yuan is available for 1215.2 yuan after a 20% subsidy [2][3] - The program has increased the coverage of high-instalment interest-free products by 60%, with the number of eligible products reaching tens of millions [3][5] Group 3: Merchant Response - Merchants are responding positively to the initiative, with nearly 70% reporting increased sales after offering interest-free installment options, leading to an average sales increase of 30% for subsidized products [4][5] - The strategy is expected to drive significant sales during the "Double 11" event, with past data indicating that categories with high interest-free installment rates see the highest growth in transaction volume [5][6] Group 4: Financial Strategy - The combination of "National Subsidy" and interest-free installments is part of a broader strategy to provide targeted financial support for consumption, ensuring that funds are directed towards genuine consumer spending [6] - The initiative aligns with the government's goal of enhancing consumer spending without resorting to excessive credit expansion, focusing on specific consumption areas [6]