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Fiscal and Financial Synergy: 100 Billion Special Fund Boosts Domestic Demand with Tangible Results

2026-05-09

      On May 9, 2026, Xinhua News Agency reported that China’s package of fiscal and financial policies to coordinate and promote domestic demand has achieved tangible results. The 100 billion yuan special fund for fiscal and financial coordination to promote domestic demand has gradually played a leveraging role, achieving phased results in supporting private investment and promoting residents’ consumption. By the end of the first quarter, relevant policies had supported enterprises’ financing of about 330 billion yuan, a year-on-year increase of 12.8%, benefiting investment of about 480 billion yuan.

     The package of policies focuses on the two key areas of investment and consumption, launching 4 specific measures to support private investment and 2 to support residents’ consumption, building a transmission chain of “fiscal guidance, financial amplification, market operation, enterprise follow-up and personal benefit”. In terms of private investment, policies such as small and micro enterprise loan interest subsidies and private investment special guarantee plans have reduced enterprises’ financing costs and thresholds, benefiting a large number of private business entities in Guangxi, Zhejiang and other places.

      Guangxi Dayuan Technology Co., Ltd. is one of the beneficiaries of the policy. With the support of the private investment special guarantee plan, the company obtained a 1.6 million yuan guarantee loan for equipment renewal and technological transformation, effectively alleviating the financing difficulties in the expansion process. Data shows that as of early April, the cumulative landing scale of Guangxi’s private investment special guarantee plan was nearly 1.4 billion yuan, serving more than 1,500 private business entities.

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