China will not adopt national vouchers in stimulus

A senior government official has said that China will not issue national vouchers as part of its US$585 billion economic stimulus plan, Reuters reported, citing state media. Vice Finance Minister Liao Xiaojun on Sunday told the Beijing News from the sidelines of the National People’s Congress that Beijing had no objections to local governments issuing vouchers to boost spending on tourism or shopping. Regional governments in Hangzhou, Hunan, Sichuan and Shandong have already issued vouchers to encourage consumer spending. Liao’s comments highlight the limited role the central government will have in the stimulus package spending, 70% of which is expected to come from local governments, state-owned banks and companies. Separately, Liao dismissed rumors of a further cut in the stamp tax on stock trading, saying "there is no room for further cutting."