Stimulus measures spark consumer spending surge in China during National Day holiday

A series of government stimulus policies energized consumer spending during China’s National Day holiday, which ran from Oct 1 to 7, sparking optimism among foreign investors about the country’s economic prospects.

This year’s week-long holiday saw strong consumer spending across the nation. In cities like Nanjing in east China’s Jiangsu Province and Taiyuan in north China’s Shanxi Province, shoppers have been snapping up bargains on home appliances, spurred by trade-in incentives and promotional offers.

The automotive sector also saw a resurgence, with nearly 20 cities, including Tianjin Municipality in northern China and Suzhou City of Jiangsu, hosting auto shows that attracted large crowds. These events, coupled with various incentives such as trade-in subsidies, have raised interest in car purchases.

“The government provides a scrap subsidy of 20,000 yuan (about 2,850 U.S. dollars), and with the additional discounts from brands, it makes the overall deal quite attractive. It really saves us a lot of money,” said a consumer.

Prior to the holiday, the government implemented a series of measures, including cutting the reserve requirement ratio for banks and lowering mortgage rates on existing home loans, to boost market confidence.

These policies have garnered a positive outlook for China’s economic future from international investors. Prominent investment firms, including U.S.-based Goldman Sachs and Morgan Stanley, as well as Switzerland’s UBS, have expressed their optimism and confidence in China’s economy.

“Major financial institutions from the United States, Europe and the Asia-Pacific region have released reports that are broadly optimistic about China’s economy and stock market. Many have also raised their investment ratings, reflecting strong expectations for China’s economic and capital market performance,” said Bai Ren, executive director of the Bank of China International Holdings Securities Limited.

An artistic performance was staged in Urumqi, capital of northwest China’s Xinjiang Uygur Autonomous Region, on Sunday night to celebrate the 70th founding anniversary of the Xinjiang Production and Construction Corps.

Vice Premier He Lifeng, a member of the Political Bureau of the Communist Party of China (CPC) Central Committee, led a central delegation to watch the gala together with people of various ethnic groups from all walks of life.

The performance displayed notable achievements made by the Xinjiang Production and Construction Corps over the past seven decades, especially its progress in deepening reform, promoting high-quality development and pursuing modernization since the 18th CPC National Congress in 2012.

The central delegation comprising 24 members arrived in Urumqi on Sunday afternoon to attend celebration activities.