CNY300bn of Stimulus to Revitalize Industrial Machinery and Incentivize Households to Invest in cleaner technology.

• Long dated Chinese government bonds will be issued to fund an initiative to replenish industrial and household equipment.
• With a focus on cleaner technologies this stimulus is seen as directly targeting China’s booming EV industry
• Subsidies for EV manufacturers will be complemented by local government incentives for households to trade in their vehicles for upgrades, and support demand for EV’s and EV manufacturers
• In an environment where the potential front runner for the White House sees EV’s as a ‘Green Scam’ and suggests that they will completely obliterate the US automotive industry, this program comes at an interesting juncture .
• To add to this, a 15% subsidy will be included for purchases of energy efficient household appliances.