Why debt-shy Chinese consumers may snub loan subsidy scheme

Aug 14, 2025 | INVESTING

As China rolls out subsidies for personal consumer loans, covering part of the interest costs, Beijing’s latest effort to spur spending is likely to be tested by a deeply ingrained public attitude: saving.
For many Chinese households, including Mary Lin, a 54-year-old primary school teacher, borrowing to spend remains unimaginable.
“Except for a mortgage, I’ve never taken out a bank loan in my life,” she said.
“Taking out a bank loan to spend isn’t popular for people of our generation, unless…

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