(Yicai Global) July 8 -- Beijing and other Chinese provincial-level governments are distributing tens of millions of US dollars’ worth of coupons and subsidies in the catering, auto, tourism and other sectors to get people spending again after the fallout from a resurgence of Covid-19 as experts say that the country’s retail sales should bounce back in the second quarter.

Beijing will issue CNY100 million (USD15 million) in food and beverage coupons starting this month, the municipal government said yesterday. It will also offer accommodation vouchers worth up to CNY1,000 (USD150) per customer, to a maximum value of CNY30 million (USD4.5 million), through tourism platforms over the next three months.

China’s retail sales of consumer goods are expected to jump by between 1.5 percent and 4.5 percent in the second half as supportive policies come into effect, Wu Chaoming, vice president of the Caixin Research Institute, told Yicai Global.

In addition, the capital is granting a maximum subsidy of CNY10,000 (USD1,491) for each new energy vehicle that is bought to replace an old car. Guangdong and Shanghai already have similar incentives in place.

Not to be outdone, eastern Shandong province is issuing CNY200 million (USD30 million) in coupons for passenger car purchases, CNY200 million for home appliances and CNY120 million for commercial vehicles.

China’s total retail sales of consumer goods sank 6.7 percent in May from the same period last year to CNY3.4 trillion (USD500 billion), according to data from the National Bureau of Statistics. In the five months ended May 31, the total retail sales of consumer goods dipped 1.5 percent year on year to CNY17.2 trillion (USD2.6 trillion).

Editors: Dou Shicong, Kim Taylor