Published: 15:08, May 3, 2022 | Updated: 15:16, May 3, 2022
Shenzhen begins $15m subsidy program to boost spending
By Zhou Mo in Shenzhen

In this undated file photo, skyscrapers border a lush green landscape in Shenzhen's central business district. (PHOTO PROVIDED TO CHINA DAILY)

Shenzhen introduced a 100 million yuan ($15.1 million) subsidy program this month, offering customers rebates on certain big-ticket items to boost spending as part of the municipal government’s effort to shore up the local economy.

The subsidy targets consumer electronics and home appliances, with a total of 70 million yuan and 30 million yuan respectively, according to the city’s commerce bureau.

Consumers can get a subsidy worth 15 percent of the market prices for the items they purchase at brick-and-mortar stores, capped at 2,000 yuan per person. The first batch of 498 stores with more than 20 brands and 3,200 products are participating in the program.

Consumers can get a subsidy worth 15 percent of the market prices for the items they purchase at brick-and-mortar stores, capped at 2,000 yuan per person

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The program began on May 1 and will run through August.

The latest move follows a 500 million yuan consumption voucher program launched by the Shenzhen government last week to stimulate consumption. The vouchers cover 400 million yuan used in shopping, 60 million yuan in catering, 10 million yuan in tourism and sports, and 30 million yuan in digital “red packets”.

Shenzhen recorded a GDP of approximately 706.46 billion yuan in the first quarter, growing 2 percent year-on-year, according to official statistics.

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The total value of retail sales in the city stood at 210.73 billion yuan in the first three months, down 1.6 percent year-on-year, as the coronavirus outbreak early in the year weighed on the sector. While commodity sales grew 0.5 percent, catering revenue dropped 17.3 percent.

sally@chinadailyhk.com