China urges consumers to splurge to kickstart virus-hit economy

Electronics stores, coffee chains and even local authorities in China are slashing prices and handing out millions of dollars worth of discount coupons to kickstart an economy battered by gradually easing, virus-fighting restrictions on movement.
GOME Retail Holdings Ltd. (00493.HK) and Suning.com Co. Ltd. (002024.CN) plan to hand out over 620 million yuan (US$88 million) worth of vouchers, while Alibaba Group Holding Ltd.’s (09988.HK) Alipay is giving away 10 million discount tokens for 10,000 retailers on its app.
JD.com Inc. said from Thursday it will give out 1.5 billion yuan worth of coupons for branded goods in categories including electronics.
Even the railway authority will from Wednesday cut ticket prices by as much as 45 percent, while local governments such as those of Hebei, Zhejiang and Guangxi provinces are giving out vouchers for tourist attractions, cinemas and shops.
“We’ve launched some discounted set offers to consumers in recent days, hoping to help consumers getting back to their normal life,” a Pacific Coffee chain spokeswoman said, referring to a coffee-and-bun deal priced as low as 20 yuan.
The promotions reflect concern that the outbreak has depressed consumer appetite and could have a lingering impact, even as the number of new locally transmitted cases has dropped.
About 500 cinemas reopened over the weekend after being shut for almost two months but took in just 30,000 yuan on Saturday, local media reported.
Retail sales in the world’s second-largest economy shrank by a fifth in January-February from the same period a year earlier, government data showed, during which time China began taking dramatic measures to curb the spread of the virus, shutting transport links and asking millions of people to stay home.
The government has loosened restrictions in recent weeks which is encouraging consumers to venture back into malls and restaurants, albeit amid concerns over job security and potential wage cuts brought about by a struggling economy.
“Trade, tourism catering and other services not only help to prop up an economy’s growth, but also embody a city’s vitality,” financial magazine Yicai reported Zhang Jinghua, party secretary of Nanjing, as saying in early March, days before the eastern Chinese city announced it would give away 318 million yuan worth of shopping coupons in a lottery-style scheme.
He stressed the need to grasp the balance between epidemic prevention and rehabilitation and to create a safe and secure consumer environment. The city later said it believed its move boost consumption by nearly 10 million yuan in five days. Reuters
– Contact us at [email protected]
CG
-
Sanctimonious sanctions Neville Sarony
With clockwork inevitability, the proposal by a number of US lawmakers to introduce the Hong Kong Sanctions Act provoked a locust swarm of vitriolic protests. The idea of sanctioning 49 Hong Kong
-
Opportunities brought by the ageing population Dr. Winnie Tang
According to the government projection, the average life expectancy of men and women in Hong Kong in 2022 was 81.3 and 87.2 years respectively, the highest in the world. A paper published in The
-
Macau hands out cash to everyone Ben Kwok
Perhaps we should not be too jealous of Macau residents who are going to receive 10,000 patacas from the government for the 17th year. Announced yesterday by Chief Executive Ho Lat Seng in his last
-
Geospatial intelligence fosters synergies Dr. Winnie Tang
There are a number of new proposals put forward on the development of innovation and technology in Hong Kong in this year's Policy Address, I would like to offer my views as follows: 100 smart city
-
Hong Kong losing to Macau in pace of recovery Ben Kwok
Hong Kong is stuck. But Macau is strong. Financial Secretary Paul Chan Mo-po said the economy will grow by over 3 per cent this year, lower than his previous forecast of between four and five per