Consumption is expected to be boosted across China during the ongoing eight-day National Day and Mid-Autumn Festival holiday, following the issuance of 69 billion yuan (approximately 9.7 billion U.S. dollars) in the government's ultra-long special treasury bonds to support consumer goods trade-in programs, the fourth batch this year.
Customers can enjoy larger price cuts as national subsidies are often accompanied by those offered by stores.
"My refrigerator is old, noisy and energy-consuming. With 20 percent discount from the national subsidy and the price cut offered by the store, I can save more than 800 yuan," said Qin Biao, a customer.
Building on the national car purchase subsidies, central China's Hubei Province has rolled out a series of policies for the holiday season, including local car purchase subsidies, personal consumption loan interest discounts, and price cuts from automakers, with a total package exceeding 100 million yuan.
"We make effective use of policies like the consumer goods trade-in programs, personal consumption loan interest discounts, local car purchase subsidies, and price cuts from automakers to offer customers a comprehensive package of car purchase offers, effectively stimulating the potential of consumption," said Liu Mo, director at the consumption division of the Department of Commerce of Hubei Province.
On October 1, China's National Day and the first day of the holiday season, the agricultural vehicle market in Changde City, central China's Hunan Province, received a large number of customers as the local autumn harvest is just around the corner.
Some farmers said the subsidies push them to replace their old and energy-consuming machines.
"Selling my agricultural machine as scrap, I would only get 3,000 to 4,000 yuan in return. With subsidies, I can earn 17,500 yuan from my old machine and I can also get a 50 percent discount when buying a new machine. The price cut is about 8,000 yuan. In total, that's about 26,000 yuan," said Liu Ze'an, a local farmer.
China included some elderly-friendly household items in its national subsidy catalog this year, allowing senior residents aged 60 and above to enjoy discounts when purchasing items to help them shower, cook, and live more conveniently and smartly.
A store catering to the needs of local senior residents in east China's Jinan City, Shandong Province, received a large number of customers during the holiday season who are eager to know more details about the price cuts.
"The subsidy for an individual product is 30 percent of its price amounting to no higher than 3,000 yuan. Since the launch of the policy, we have seen a 40 percent increase in customer inquiries," said Zhang Xinfeng, head of a local silver economy center.
Newly-issued special new bonds to boost holiday consumption through trade-in programs
