Chinese cities dole out vouchers to stimulate consumption: expert

Source:Global Times Published: 2020/3/28 15:10:42

People walk near the Sijiqing clothing wholesale market - the biggest one in China - in Hangzhou, East China's Zhejiang Province on Monday. The market resumed operations on Sunday with many measures taken including disinfecting every vehicle to provide a safe environment for customers amid the epidemic. Photo: IC


Chinese local governments are doling out billions of yuan to citizens through digital vouchers and coupons to boost domestic consumption, as the country saw a 20.5 percent decline in retail sales in the first two months amid the coronavirus outbreak.

In order to effectively stimulate consumption and boost the economy, the amounts of vouchers issued to the citizens should "reach a certain amount", Jing Linbo, director of the Chinese Academy of Social Sciences Evaluation Studies, told the Global Times on Saturday.

"The less additional restrictions on the use of digital vouchers, the better citizens can use them conveniently," Jing said.

Hangzhou, capital of East China's Zhejiang Province, announced the issuance of 1.68 billion yuan ($236.7 million) in digital vouchers to residents of the city including those without hukou, or household registration of local urbanities. 

Since Friday, Hangzhou released the first round of coupons valued at 50 yuan each - that residents can use to pay for items, either online or offline, through Alipay.

"I spent 40 yuan in the supermarket close to my home and I can use the 10 yuan coupon," a 66-year-old woman in Hangzhou, surnamed Wu, told the Global Times on Saturday, who got a coupon of 50 yuan.

"It's very convenient. It is an enjoyable shopping experience because the voucher allows me to save money and purchase more," Wu said, noting that some of her friends are expecting the Hangzhou government to release more in the coming weeks.

Besides Hangzhou, other cities such as Qingdao, Xiamen, Hefei and Shaoxing have followed suit, which have released at least 4 billion yuan in digital vouchers, media reported. Jiangsu's provincial capital of Nanjing also issued 318 million yuan in digital vouchers to its residents and those facing financial difficulties on March 15. 

A Nanjing resident surnamed Xia told the Global Times on Saturday that she used a 100-yuan coupon at a restaurant. "It's good for me," she said, adding that she needs to spend up to 150 yuan so she can use the coupon.

Posted in: ECONOMY

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