China allocates 62.5 billion yuan for 2026 consumer goods trade-in scheme

China has allocated 62.5 billion yuan (HK$69.6 billion) in ultra-long special treasury bond funds to support its consumer goods trade-in scheme next year, state news agency Xinhua reported on Tuesday.

China launched the scheme in 2024, offering subsidies when consumers replace old appliances, bicycles and even cars, in a bid to shore up domestic demand amid persistent economic and trade pressures at home and abroad.

Tuesday's report did not specify the total size of the fund for the 2026 scheme. China set aside 300 billion yuan in special treasury bonds this year.

In a separate statement jointly issued by China's state planner and finance ministry, the government said digital and smart products will be included in the scheme next year.

Smartphones, tablets, smartwatches and smart wristbands will qualify for a 15 percent rebate, capped at 500 yuan each.

Consumers purchasing any of six categories of major home appliances will also be eligible for a 15 percent subsidy, of up to 1,500 yuan per item.

Buyers scrapping old cars will receive subsidies equal to 12 percent of the purchase price of new energy vehicles, capped at 20,000 yuan, while those replacing older vehicles with new NEVs will get 8 percent, up to 15,000 yuan.

Reuters