China’s manufacturing hub proposes Hong Kong-style shopping vouchers to boost slowing economy

Name: Hong Kong consumer watchdog: be careful about purchases through e-consumption voucher scheme
Uploaded: 2021-11-12T22:00:09.000Z
Duration: 6 min 35 s
Description: Hong Kong consumer watchdog: be careful about purchases through e-consumption voucher scheme

Guangdong announced nine policies aimed at jump-starting spending in commercial districts as well as boosting dining and tourism

Traditional brick-and-mortar retail and e-commerce platforms are also included in proposed scheme, which is similar to Hong Kong’s consumption voucher scheme

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The consumption voucher scheme in Hong Kong granted each eligible resident HK$5,000 worth of e-vouchers in stages since August. Photo: Sam Tsang

Luna Sun

Published: 6:00am, 13 Nov 2021Updated: 6:56am, 13 Nov 2021

A plan from China’s southern manufacturing hub to offer Hong Kong-style shopping vouchers in an effort to stimulate consumption and spending could kick off a nationwide roll-out, although economists and analysts have questioned the effectiveness of the proposals.

Facing the increasing slowdown in China’s economy, the Guangdong provincial government announced nine policies this week aimed at jump-starting spending in commercial districts as well as boosting dining and tourism, with traditional bricks-and-mortar retail and e-commerce platforms also included.

Data shows that Hong Kong’s September retail sales had shot up by 7.3 per cent year on year, continuing an upwards trajectory fuelled by a HK$36 billion (US$4.6 billion) digital voucher scheme aimed at boosting consumer spending. The scheme granted each eligible Hong Kong resident HK$5,000 (US$642) worth of e-vouchers in stages since August.

Additional quotas for new energy vehicles in Guangdong and Shenzhen, as well as changes to the application and qualification process for a car licence lottery were also introduced as part of efforts to boost car sales.

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Hong Kong consumer watchdog: be careful about purchases through e-consumption voucher scheme

Authorities also encouraged the cultivation of international and regional consumer cities in line with similar nationwide campaigns, while rewards for cities with outstanding performances were also proposed.

As part of its 14th five-year plan and 2035 vision, China will spend five to 10 years developing a number of international consumer centre cities, with Beijing, Shanghai, Guangzhou, Tianjin and Chongqing playing leading roles.

Both Beijing and Shanghai said in September they had already laid out plans to attract more international brands, increase the number of duty free shops, allow more categories of duty-free goods and increase the duty-free shopping quota per consumer.