(Yicai Global) Nov. 18 -- Eastern China's Hangzhou, home to companies such as Alibaba Group Holding and carmaker Geely Holding Group, will subsidize night economy businesses for three years to create a "city that never sleeps."

Eligible evening venues can cover up to 20 percent of their costs with a one-off subsidy capped at CNY500,000 (USD70,150) from next year till 2025 as the city promotes consumption, the local government announced in a proposal gathering public opinion on its website.

Stores, including bookshops, restaurants, and entertainment venues, that stay open from 10 p.m. to 6 a.m. will receive a one-time subsidy ranging from CNY100,000 to CNY500,000 based on their location. Moreover, the capital city of Zhejiang province intends to evaluate a batch of new technologies, products, and consumption scenarios every year, rewarding one of them with a one-time cash prize of CNY1 million (USD140,000).

Hangzhou will also encourage special business districts and blocks to integrate live-streaming with their digitalization. Businesses that build live-streaming rooms and e-commerce centers will be given a one-time subsidy of 20 percent of a maximum investment of CNY1 million.

Production and consumption are steadily rebounding as the Covid-19 pandemic is put under control. In the first three quarters of this year, Hangzhou's gross domestic product rose 1.8 percent to CNY1.36 trillion (USD190 billion), accelerating the pace of growth by 0.6 percentage points from the first half.

The value added of the city's service sector moved up 1.4 percent to CNY923.3 billion (USD129.54 billion), increasing the clip of rising from the first six months of this year. Hangzhou's total retail sales of consumer goods jumped 5.4 percent to CNY522.8 billion, up from a 3 percent hike.

Editor: Emmi Laine, Xiao Yi