Under the plan, led by the finance ministry, China’s government will subsidise interest rates on some consumer loans for purchases worth up to Rmb50,000 ($7,000). Individuals will receive a 1 percentage point cut on interest rates, which are normally about 3 per cent for one-year consumer loans.

In China’s latest effort to boost domestic consumption, three government departments announced a plan to provide subsidies on qualified personal consumer loans with a maximum of 3,000 yuan ($417.5) per person.

China plans to boost domestic consumption by offering interest subsidies on loans to households and businesses, aiming to reduce borrowing costs and spur spending, Vice Finance Minister Liao Min said on Wednesday.