China’s consumer spending rose 8.6% year-on-year in the first four days of this year’s Chinese New Year holiday, reports Caixin. This was backed by an extended holiday and fresh government stimulus that lifted outlays on services and technology.
The increase offers a sign of resilience as policymakers roll out renewed support measures, including a consumer incentive campaign and the issuance of long-term treasury bonds aimed at bolstering domestic demand. Major regional hubs reported solid growth. Shanghai recorded RMB 60.35 billion in total online and offline consumption from February 15-22, up 12.8% from a year earlier. Hubei province posted an 11.6% rise in retail and catering sales to RMB 30.55 billion during the first seven days of the break, while key pedestrian streets saw a surge in both foot traffic and turnover.
The recovery was supported by the “Happy Shopping for New Year” campaign launched by the Ministry of Commerce and nine other government departments. The program earmarked RMB 2.05 billion for vouchers and subsidies, while a pilot invoice lottery in 50 cities offered a total prize pool exceeding RMB 1 billion. In addition, the issuance of RMB 62.5 billion in ultra-long special sovereign bonds late last year to support consumer goods trade-ins helped drive demand for green and smart products during the holiday.