MNI China Press Digest July 29: Subsidy, Bonds, Consumption
Jul-29 02:15By: Lewis Porylo
China+ 3
Highlights from Chinese press reports on Tuesday:
- China’s new child care subsidy of CNY3,600 per child, up to the age of three, will require CNY101.2 billion annually, based on latest official data, Yicai.com has calculated. The plan outlines that the central government will offer proportional financial support across the eastern, central and western regions. Local governments may contribute additional funding based on their fiscal capacity, with any supplementary financial requirements to be covered by local budgets. Jiang Quanbao, professor at Capital University of Economics and Business, said other support measures are needed to boost fertility, including education, childcare services, parental leave, healthcare and housing.
- China’s panda-bond market expanded rapidly in H1, driven by increased participation from foreign institutions, Securities Daily reported. In total, CNY84.4 billion of panda bonds were issued in the first half of 2025, of which CNY23.5 billion came from foreign governments and international institutions, up 161% y/y, the newspaper said. The cumulative market issuance exceeded CNY1 trillion by July 28, ranking second globally in terms of yuan-denominated international financing, a development expected to support the further internationalisation of the yuan significantly, Securities Daily noted.
- China is expected to boost consumption further by removing unreasonable restrictions, optimising the consumer goods trade-in programme and diversifying supply, Yicai.com reported. The trade-in scheme should be further expanded to cover service consumption, including tourism and catering in the second half of the year, said Xiao Lisheng, researcher at the Chinese Academy of Social Sciences. Fiscal authorities should improve spending structure and increase fund efficiency to strengthen social welfare, said Luo Zhiheng, chief economist at Yuekai Securities, adding that further Reserve Requirement Ratio (RRR), interest rate and mortgage cuts were necessary.
