By South China Morning Post | Created at 2024-09-25 12:33:32 | Updated at 2024-09-30 15:32:28
5 days ago
Keen on enticing people to get out and spend more money, Shanghai will dole out 500 million yuan (US$71.2 million) worth of consumption vouchers – an announcement that came a day after the central government fired off a policy bazooka to revive China’s struggling economy.
The programme is the biggest of its kind for the commercial capital of China, and it will aim to spur consumption in multiple areas, including the catering and hospitality industry, according to plans unveiled by the city government on Wednesday.
The initiative also marked the first big move by a local government after central authorities on Tuesday unveiled their biggest stimulus package since the pandemic, underscoring coordinated efforts to pull the world’s second-largest economy back on track to achieve Beijing’s growth target of “around 5 per cent”.
“The timing and the size of the latest consumption vouchers are significant,” said Fu Weigang, executive president of the Shanghai Institute of Finance and Law think tank.
The plan also followed significant declines in Shanghai’s retail sales in recent months, with restaurant owners and operators struggling to remain profitable as consumers have become more cautious about spending.
