China orders banks to push consumer financing and credit card use

China's financial regulator has ordered banks and financial institutions to promote consumer financing and credit card use to encourage people to spend more. This move is part of the Communist Party's effort to boost consumer confidence, which has been affected by job and economic outlook worries. The regulator wants banks to lend more and help borrowers who face difficulties. The announcement led to a surge in share prices in China. Officials will hold a briefing on Monday to discuss efforts to increase spending and investment, crucial for the economy's growth. China's economy has been growing at a 5% pace, but consumer spending has been weak due to concerns over jobs, healthcare, and education. A downturn in the property market has also affected consumer sentiment. The government is also investing in trade-in programs for cars and appliances to encourage spending and reduce excess inventories. Consumer financing in China is lower than in many other countries, and cash and digital payments are more common than credit card use. The government hopes to increase consumer spending to drive business activity and offset the impact of a potential decline in exports due to US tariffs.