China's financial regulator, the National Financial Regulatory Administration (NAFR), has issued a directive to financial institutions to enhance support for consumption. This includes relaxing consumer credit quotas and loan terms to stimulate spending in the world's second-largest economy. The NAFR encourages banks to provide loan renewal support to eligible borrowers and to increase credit supply to consumer service industries such as wholesale and retail, accommodation and catering, cultural and tourism, education, health, and elderly care. The CSI 300 Index surged 2.43% to its highest level this year, driven by gains in consumer shares, reflecting optimism over policy support. The Shanghai Composite Index also rose above the 3,400 mark for the first time since December 31, while the Hang Seng Index closed up 2.12%. The FTSE China A50 Index Futures and China Liquor and Consumption baskets also saw significant gains, with the China Humanoid Robot's basket up 5.5%. The financial regulator's actions are part of a broader strategy to boost consumption, prioritized by Beijing to address economic imbalances. The government has promised increased efforts to support consumption amidst an escalating trade war with the U.S. and ongoing deflationary pressures. This includes plans for consumer goods trade-in programs and the issuance of ultra-long special treasury bonds worth 300 billion yuan to support these initiatives. Additionally, the government aims to create new consumption scenarios to accelerate the growth of digital, green, and smart consumption.