China to Issue Consumer Goods Trade-In Funds

BEIJING (Reuters) – China will issue the remainder of its consumer goods trade-in funds in an orderly manner. The central government is guiding local governments to utilize these funds at a stable pace, as reported by state media Securities Times on Wednesday.

The central government has allocated 162 billion yuan ($22.54 billion) out of 300 billion yuan in special treasury funds under the scheme to local governments.

This program is a key initiative to revive household consumption in the world’s second-largest economy, contributing to an increase in retail sales last month. However, at least six cities and municipalities across China suspended trade-in subsidies for car buyers in June, according to Reuters’ review of government announcements.

(Note: $1 = 7.1863 Chinese yuan renminbi)