China will provide financial subsidies of 26.5 billion yuan ($4.2 billion) to stimulate the consumption of energy-saving products, mainly automobiles and household appliances, said the State Council.

The green measure also aims to expand domestic demand in a bid to provide stable growth for the world's second-largest economy. The subsidy will be available for household appliances including air conditioners, refrigerators and washing machines for one year.

Among the subsidies, 6 billion yuan will be used to promote the consumption of energy-saving vehicles with engine capacities of 1.6 liters or less, and 2.2 billion yuan is going to subsidize the use of energy-conserving light bulbs and LEDs.