CCTV9英语新闻：中国扩大消费金融业

China will expand a pilot consumer credit service nationwide that offers small loans with no collateral to encourage more spending, especially from lower-income groups, amid sluggish demand. 

 

China plans to popularize consumer finance companies across the country. Premier Li Keqiang said at a state council meeting that the consumer finance companies will focus on middle and low income families, and will promote consumption by helping those families upgrade major household items.

 

Analysts say the consumer finance companies could help boost domestic consumption in China.

 

"The consumer finance companies mostly coming from the mixed ownership firms. Those companies can mobilize the social power to stimulate consumption. It has a wider significance and provides a solid base for long-term development," said Liu Biansheng, professor of Henan University of Economics & Law.

 

The consumer finance companies are non-banking financial institutions that provide loans for consumption purposes. Those are now seen in 16 cities in China. Analysts say the consumer finance companies will have a role in transforming China's economy from investment-oriented to consumer-oriented mode.

 

"The consumer finance is beneficial to the development of macro economy. It can fuels the demand and also boost consumption. It can also digest some excess capacity," said Liu.

 

But some experts doubt whether the consumer finance industry can give a significant boost to consumption, since the use of consumer credit loans is still limited.