China's Consumer Rebound: Subsidies and Trade-In Schemes

China is expanding its consumer trade-in scheme by adding more home appliances like microwaves and digital goods. Aiming to rejuvenate its household sector, the government has allocated significant funds and subsidies. Analysts see this as a policy shift towards boosting consumption amid economic challenges.

China has expanded its consumer trade-in scheme, incorporating more home appliances such as microwaves and digital items, to boost demand in the sluggish household sector. The initiative, supported by significant subsidies, aims to revive consumer spending, a crucial element for economic recovery.

The government has earmarked 81 billion yuan for these trade-in activities, and officials suggest this will swell to 300 billion yuan by 2025. This foresight forms part of a larger strategy to stimulate growth in the world's second-largest economy, currently stifled by a severe property crisis affecting consumer wealth and spending.

Economists predict that further supportive policies and a rebound in retail sales growth will emerge, provided asset prices stabilize and employment prospects improve. To encourage equipment upgrades, China plans to fund projects in key sectors such as high-tech industry and agriculture, involving ultra-long treasury bonds and low-cost financing options.

(With inputs from agencies.)