China's Ministry of Finance, the People's Bank of China (PBOC) and the National Financial Regulatory Administration jointly issued a notice on August 21 to strengthen fiscal-financial coordination and support domestic demand. Effective August 1, 2026, the policy extends the personal consumer loan fiscal interest subsidy program to newly originated credit card special installments, consumer installments and cash advance installments, each eligible for an annualized 1 percentage point subsidy. Newly issued working capital loans to eligible small and medium-sized private enterprises also qualify for an annualized 1 percentage point subsidy on principal for up to two years. Annual eligible loan ceilings rise from 50 million yuan to 75 million yuan for SME loans, from 10 million yuan to 20 million yuan for service-industry business entity loans, and from 3,000 yuan to 5,000 yuan for personal consumer loans and credit card installments. Participating lenders expand to 21 national banks, city commercial banks, rural cooperative financial institutions, private banks and foreign banks with financial regulatory ratings of 3A or above. The adjustment builds on Documents Caijin [2026] No. 1, No. 4 and No. 5, and is intended to reduce financing costs, widen policy access and support private investment and household consumption. Its impact will depend on subsidy disbursement, bank risk appetite and whether private enterprises face barriers when applying.