If you are planning to buy a car or change your home appliances, please pay attention! Gift packages have been launched in various places, and many banks have supported them

Since the beginning of this year, the policy of replacing the old with the new has been frequently introduced, and relevant rules have been issued in various places to strengthen financial support.

At the car promotion in Yongnian District, Handan City, Hebei Province, consumers are buying cars with trade-in discounts. (PHOTO COURTESY OF CNSPHOTO)

Policies promote trade-in

Promoting large-scale equipment renewal and consumer goods trade-in is not only an important move to smooth the national economic cycle and improve the quality of life of thousands of households, but also a major measure to cultivate and form new quality productivity.

The "Action Plan for Promoting Large-scale Equipment Renewal and Consumer Goods Trade-in" issued in March this year clearly states that a new round of large-scale equipment renewal and consumer goods trade-in will be promoted in an orderly manner, and the equipment in key industries, construction and municipal infrastructure equipment, transportation equipment and old agricultural machinery, education, cultural tourism and medical equipment will be updated and transformed, and consumer goods such as automobiles and home appliances will be actively carried out to form a scale effect of upgrading.

The "Action Plan for Promoting the Trade-in of Consumer Goods" issued by 14 departments including the Ministry of Commerce put forward a number of measures in carrying out the trade-in of automobiles, promoting the trade-in of household appliances, and promoting the "renewal" of home decoration, kitchen and bathroom. At the same time, the action plan makes arrangements for increasing fiscal and financial support policies, proposing that the central government and local governments should work together to arrange funds to support the scrapping and renewal of automobiles; Encourage qualified localities to make overall plans for the use of funds related to the modern commercial and trade circulation system arranged by the central government.

On April 26, the People's Bank of China, the National Development and Reform Commission, the Ministry of Finance and the State Administration of Financial Supervision jointly held a meeting to promote large-scale equipment renewal and consumer goods trade-in finance. The meeting pointed out that financial support should be done for large-scale equipment renewal and trade-in of consumer goods.

Lian Ping, chairman of the China Chief Economist Forum, said that it is estimated that automobiles and home appliances are expected to bring a total of 350 billion yuan to 400 billion yuan of consumption increase. In the short term, the trade-in policy can stimulate consumer demand and drive related investment, effectively stimulating and expanding domestic demand; In the long run, the trade-in can further promote the transformation and upgrading of consumption and the optimization and upgrading of the industrial structure, and drive the economy to achieve high-quality transformation and development.

Tan Haojun, a financial commentator and adjunct professor at Central South University of Political Science and Law, told a reporter from China Business Daily that the prospect of replacing old appliances with new and large-scale equipment renewal is very broad, and the introduction of policies has a great effect on further boosting the consumer market.

Various places have launched "renewal" gift packages

After the introduction of top-level policies, many places have taken active actions to introduce specific plans to strengthen financial support, guide financial and banking institutions to innovate products, reduce interest rates and make profits, and optimize services.

On May 10, the Jilin Provincial Department of Commerce and other 15 departments jointly issued the "Jilin Province Action Plan for Promoting the Trade-in of Consumer Goods", which proposed to encourage financial institutions to increase financing support for enterprises related to the recycling of waste household appliances and the trade-in of household appliances, and actively develop green and smart home appliances consumer finance products according to the principle of marketization, provide financing services such as flexible installment and differentiated pricing, and expand relevant consumer credit business; Implement the policy that financial institutions shall independently determine the maximum proportion of loans for self-use traditional power vehicles and self-use new energy vehicles, and encourage financial institutions to appropriately reduce or exempt the liquidated damages arising from the early settlement of loans in the process of car trade-in.

On May 8, 16 departments, including the Anhui Provincial Department of Commerce, issued a notice to encourage financial institutions to reasonably determine the down payment ratio, interest rate level and loan term of passenger car loans under the premise of legal compliance and controllable risks. Insurance institutions are encouraged to further enrich automobile insurance products and services, and reasonably determine insurance rates for new energy vehicles.

The Jiangsu Provincial Government recently issued the "Jiangsu Province Action Plan for Promoting Large-scale Equipment Renewal and Consumer Goods Trade-in" proposed to optimize financial support. Actively strive for national scientific and technological innovation and technological transformation re-loans. Comprehensively use financial instruments and policy measures such as financing guarantees, interest discounts, and risk compensation, guide financial institutions to increase credit for equipment renewal and technological transformation, and reasonably determine loan interest rates. Encourage financial leasing to participate in the renewal of equipment in key areas such as education and health. Encourage financial institutions to strengthen financial support for the trade-in of bulk durable consumer goods, reasonably determine the down payment ratio under the premise of compliance with laws and regulations and controllable risks, simplify the handling process, and innovate green financial products and services.

On April 26, Dezhou City, Shandong Province held a regular briefing on the trade-in policy of consumer goods, proposing to give strong support to financial assistance to consumption, guiding financial and banking institutions to innovate products, reduce interest rates and optimize services, and the city's 17 financial institutions and 4 insurance institutions launched a total of 106 supporting policy measures.

Hong Yong, an expert at the think tank of the 50-person forum on the integration of China's data and reality, told reporters that financial institutions actively responded to the trade-in policy and launched special financial products and services, which can not only effectively stimulate consumer demand in the fields of automobiles, home appliances, home decoration, etc., accelerate economic circulation and industrial recovery, but also help reduce the threshold for consumer redemption, improve the quality of life, and promote the development of environmental protection and circular economy.

Financial "living water" promotes consumption

Under the active promotion of policies, financial institutions have refined implementation plans, accelerated product innovation, improved service quality and efficiency, and promoted financial support for large-scale equipment renewal and trade-in of consumer goods.

At present, a number of banks have implemented new policies such as trade-in and support for new energy vehicles. For example, Ping An Bank has launched the "trade-in" policy for auto finance, which allows the new car account manager to issue a new car loan interest deduction coupon to the customer who is about to settle a new car loan or has the intention of replacing a new car, which can be used to deduct the interest generated by the customer's new car loan for replacing the vehicle. If a customer successfully recommends a friend to apply for a new car loan, he or she can receive a new car loan interest deduction coupon to offset the interest generated by the new car loan when the customer replaces the vehicle.

Zheshang Bank recently issued the "20 special measures to support large-scale equipment renewal and trade-in of consumer goods", focusing on promoting equipment renewal in key areas of the whole society, improving the supply capacity of advantageous equipment and high-quality consumer goods, accelerating the transformation and upgrading of the manufacturing industry, and fully promoting the development of new quality productivity.

In addition, ICBC Guangdong Branch launched the "Trade-in Installment" product to support the trade-in of bulk consumer goods such as automobiles, home appliances and furniture, and optimized the loan interest rate, quota and application process. Zhongyuan Bank has also launched a series of new "renewal loan" products, including "renewal e-loan", "renewal new car loan" and "new housing loan", which are aimed at high-quality customers with trade-in consumption needs such as home improvement and home appliances, automobiles and real estate. The "trade-in consumer loan" launched by Qingdao Rural Commercial Bank can have a loan amount of up to 1 million yuan, a loan term of up to 5 years, and a preferential interest rate.

Industry insiders believe that the trade-in policy will open up a new blue ocean for banks' retail consumption business, and financial institutions should seize the opportunity to strengthen risk management and protect the rights and interests of financial consumers.

Hong Yong suggested that banks should carefully balance consumption stimulus and risk management, ensure credit quality, and use technological innovation to optimize services, while actively fulfilling environmental and social responsibilities to ensure the environmental protection of old material recycling, so as to tap market potential and steadily promote the realization of policy goals.