Beijing issues $1.7 bln in vouchers to boost virus-hit consumption
People's Daily
1591531071000

3.jpeg

Shoppers walk pass an Apple store in Beijing, June 6, 2020. (Photo: VCG)

The coronavirus outbreak led to lockdowns and restrictions on travel that have squeezed consumer spending. In order to spur consumption, Beijing launched a shopping event on Saturday that lasts until the end of the National Day holiday in October, during which 12.2 billion yuan (1.72 billion US dollars) worth of vouchers are expected to be issued.

The launch was jointly organized by the state-run China Media Group (CMG) and the Beijing municipal government.

The first batch of three million voucher packages was issued on Saturday through e-commerce giant JD.com. Each package contains three coupons worth 60 yuan, is valid for 14 days, and can be used in sectors such as catering and travel.

China's retail sales of consumer goods, a major indicator of consumption growth, tumbled by 19 percent year-on-year in the first quarter of 2020.

Voucher issuance programs are expected to release pent-up demand. Chinese authorities released guidelines in early March to boost consumer spending and unleash the potential of the domestic market. Over 50 Chinese cities have rolled out voucher programs worth billions of yuan, which are used in offline stores in various sectors.