Splashing out: Chinese Lunar New Year spending bucks growth slowdown: UnionPay

Mainland consumers splashed out at record levels over the Lunar New Year holiday, defying a nationwide slowdown in economic growth, according to state-backed card issuer and payment processor UnionPay.

UnionPay said on Sunday that mainlanders used its debit and credit cards to make 307 million transactions, spending a combined 312.1 billion yuan (HK$371.3 billion) during the week-long break starting February 7.

That added up to a 31 per cent increase in spending compared to the Lunar New Year holiday last year, raising hopes for the mainland’s efforts to shift its economic balance away from exports and towards greater reliance on services and consumption.

READ MORE: From ‘virtual’ lai see and shopping overseas to watching mermaids and monkey kings: China’s favourite activities for the Lunar New Year

Spending on consumer goods remained strong, coming in at more than 100 billion yuan.

About half of the spending in this sector was in supermarkets, shops selling household appliances, and department stores, while restaurant receipts rose by 6 per cent to 5 billion yuan, according to UnionPay.

The Ministry of Commerce said on Sunday that retailers and restaurants posted revenue of 754 billion yuan during the break, an 11.2 per cent increase compared last year’s holiday.

“Lunar New Year is the most important festival for Chinese people and they are keen to choose more upmarket restaurants for dinner with family and friends,” UnionPay analyst Chen Han said.