Shanghai unveils 500-million-yuan voucher plan to boost consumption after stimulus package

E-coupons will offer anyone in Shanghai discounts on a wide range of purchases, from hotels and movies to restaurants and sporting events

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Crowds are seen in the Nanjing Road shopping district of Shanghai. Consumption vouchers will be made available in the city in the coming days to spur consumption. Photo: Bloomberg

Mandy Zuoin ShanghaiandFrank Chenin Shanghai

Published: 8:30pm, 25 Sep 2024Updated: 8:49am, 26 Sep 2024

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.

According to the plan, vouchers worth 360 million yuan will be distributed to people to save money when dining in restaurants; 90 million yuan will be offered to subsidise hotel stays; 30 million yuan in moviegoing discounts – ranging from 20 yuan (US$2.8) to 30 yuan – can be snatched up; and 20 million yuan in discounts will go to those attending sports events or for participating in sporting activities, such as cheaper visits to a public swimming pool.