Wuhan to Disburse 500 Million Yuan in ‘Consumption Coupons’

From Sunday, authorities in the central Chinese city of Wuhan will begin issuing 500 million yuan ($71 million) worth of “consumption coupons” to local residents, according to state broadcaster China Central Television.

The vouchers, which will be issued continuously through July 31, can be used to order meals; buy items at malls, supermarkets, and convenience stores; and participate in sports- and tourism-related activities. In addition, a special consumption fund of 18 million yuan will be established for people living below the poverty line.

Given Wuhan’s total population of around 11 million, the 500 million yuan voucher fund is equivalent to each resident receiving, on average, just over $6. The coupons can be claimed via mobile apps such as Alipay, Meituan-Dianping, and WeChat.

While CCTV’s report did not elaborate on whether local businesses were offering their own goods and services at a discount or whether local authorities were footing the bill, an economist told domestic outlet Securities Times that the consumption coupons “are from local governments’ fiscal expenditures.”

With China’s small- and medium-sized businesses being especially hard-hit by the COVID-19 pandemic, many cities and provinces — including Hangzhou, Nanjing, Jiangxi, and Anhui — have issued or announced plans to disburse consumption coupons in a bid to boost their economies. (Image: Xinhua)