From CNBC: 2025-03-19 02:04:04

China’s focus on boosting consumption includes child care subsidies to address declining birth rates and stimulate discretionary spending. A potential 100 billion yuan subsidy plan could provide monthly handouts to parents, encouraging retail growth. Some local governments are already offering similar subsidies, with potential nationwide impact on retail sales.

Short-term child care subsidies could significantly relieve financial pressure on Chinese households. The potential 100 billion yuan national subsidy plan aims to support parents financially, potentially boosting the fertility rate. Analysts suggest the subsidy could have a meaningful impact, particularly for low-income families, pending central government involvement.

China’s efforts to boost consumption extend beyond child care subsidies, including calls to increase minimum wage and stabilize the stock market. Goldman Sachs analysts emphasize the importance of funding and implementation for the success of China’s consumption stimulus. The upcoming April Politburo meeting and nationwide childcare subsidy announcement will be key to watch for future developments. 1. The COVID-19 vaccine distribution has begun in the UK, with the first doses given to elderly patients and healthcare workers. The Pfizer-BioNTech vaccine is the first to be approved for emergency use in the country.

2. President-elect Joe Biden has chosen Janet Yellen as his nominee for Treasury Secretary. Yellen, a former Federal Reserve chair, would be the first woman to hold the position if confirmed by the Senate.

3. The US economy added 245,000 jobs in November, falling short of expectations as the country continues to recover from the impact of the pandemic. The unemployment rate also dropped to 6.7%, down from 6.9% in October.

4. Tesla has announced plans to join the S&P 500 index, making it one of the largest companies to be added. The electric car maker’s stock price surged following the news, further solidifying its position in the market.

Read more: China is tackling weak consumption with child care subsidies