Nine Departments Issue 19 Measures to Boost Home Services, Revenue Exceeds RMB 1.2 Trillion in 2024
The Ministry of Commerce and eight other departments have issued 19 policy measures across five areas to promote high-quality development of the home services industry. The measures aim to increase support for enterprises, encourage local institutional innovation, and address industry bottlenecks. In 2024, the sector's revenue exceeded RMB 1.2 trillion, with over 30 million workers. Financial innovations such as credit lines and tailored insurance products are being introduced, but challenges remain due to asset-light business models and lack of stable employment relationships.
The Ministry of Commerce and eight other departments have issued a set of policy measures to promote the high-quality development of the home services industry. The document, titled 'Several Policy Measures on Promoting High-Quality Development of the Home Services Industry,' outlines 19 specific initiatives across five areas, including increasing support for home services enterprises and encouraging local governments to undertake institutional innovation. The measures aim to address current bottlenecks and difficulties in the industry, drive high-quality development, and boost consumption of home services. In 2024, the industry's operating revenue exceeded RMB 1.2 trillion, with more than 30 million workers employed. Some financial institutions have launched financial innovations for the home services sector, incorporating it into key areas of inclusive finance and simplifying approval processes. For example, one bank has partnered with a local home services industry association to grant overall credit to the sector and custom-developed a 'home services wallet.' Another bank has introduced a 'sincere taxpayer loan' credit product to address the asset-light, collateral-scarce nature of home services enterprises. Meanwhile, insurance companies have added coverage for female-specific malignant tumors and work-related injury disability protection in their 'home services series' products, given that the workforce is predominantly female, lacks industrial injury insurance, and frequently travels between employers' homes. Despite these efforts, deeper integration between finance and the home services industry still faces many challenges. Home services enterprises are generally asset-light with volatile cash flows, making traditional credit models poorly suited to their needs. Additionally, the industry is predominantly agency-based, lacking stable employment relationships between enterprises and workers. Most home services enterprises are small in scale with irregular financial records, making it difficult for them to meet bank credit thresholds.